1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Anyone Interested in Investing?: Where the REAL Money is Made

Discussion in 'Making Money' started by rgrmatt, Feb 19, 2009.

  1. rgrmatt

    rgrmatt Newbie

    Joined:
    Dec 18, 2008
    Messages:
    34
    Likes Received:
    10
    Occupation:
    Investing
    Location:
    Texas
    Hey Guys,

    So I'm feeling really good this month and decided to give back. Between my consulting company, affiliate marketing and investing, I've netted $20,000 so far in February and am shooting for another $5,000-6,000 at least. Now I know everyone is all about getting money in the short-term and that is completely fine and also essential to long-term growth, but what are you doing with that capital: pissing it away or watching it multiply exponentially? Probably the former.

    To give you some background, I have been investing in emerging-market equity mutual funds for 4 years now, hedge funds for 1 and have just been blowing it up. If you don't know what these securities are, they are essentially international stocks picked and managed by professional fund managers. Also, I am currently pursuing my MBA in Finance and am deciding between owning a private equity firm or going into capital management. Ok, enough about the stupid stuff and time to start quantifying everything.

    Ok, on to the figures everyone wants to know: how much can be made with mutual funds? To make it short and sweet, I diversified my capital into around 10 different mutual funds and also a money market in late 2004. Since then I have been cost averaging around $5000-8000 each month, equally into each fund. I started off in the mid $xx,xxx's and pulled 80% of my money out Jan 2008, a few months after a global recession loomed from those damn mortgage-backed securities. Anyways, all of my mutual funds averaged approx $55,000 for every $10,000 I invested back in '04. That's a 450% return + long-term/short-term capital gains reinvested + $5-8k I cost averaged each month + dividends - 15% long-term capital gains tax for selling my shares= $x,xxx,xxx.

    Lesson? Investing is where the real money is made. I know not everyone is making $xx,xxx/month or even enough where they can start investing in equities, but just saying, think long-term and start small. Start allocating $400-500/month and that adds up fast. I know it sucks that you may not see a large return for months or even years, but again, see the light at the end of the tunnel because the juice is definitely worth the squeeze. I am 23 and about to buy my Lambo Gallardo Spyder, my effin' dream car and couldn't love life any more than I do now.

    Anyways, sorry for the long post, but is anyone interested in a somewhat comprehensive mutual fund guide? I have no idea what I'd sell it for, but probably next to nothing as that isn't my primary goal here. I'm just trying to gauge how many people would be interested.

    Other than that, I am ALWAYS looking to network. Hit me up if you are interested.

    Matt

    AIM - Juise719
     
    • Thanks Thanks x 7
  2. SpellZ

    SpellZ Regular Member

    Joined:
    Feb 8, 2009
    Messages:
    357
    Likes Received:
    312
    Location:
    Toronto, ON
    Would you recomnd hiring someone to do the stocks for you and then giving them a %
    Or doing it all by yourself?
     
  3. pdaguy9

    pdaguy9 BANNED BANNED

    Joined:
    Sep 5, 2007
    Messages:
    120
    Likes Received:
    98
    I'm an investment manager by day and commend rgrmatt for advising people to invest.

    Too many young people don't and then start to think about it once they're too old for it to make a difference. Many people that come to me for help have not done enough early enough thinking they will have time to invest "down the road".

    Most on this forum are relatively young. Many make a LOT of money. If you're in this group and you're not investing now, I have one word for you - START.

    You may think that AM will last forever, and it very well may. But one thing I've learned in my 36 years is that things change. Google could singlehandedly put an end to AM. Large corporations could move in on this billion dollar industry to dominate it. How'd you like to start spending $40 CPC for those Acai campaigns?

    If you don't know where to start, PM me. I'll set you in the right direction.
     
  4. predayshus

    predayshus Junior Member

    Joined:
    Aug 13, 2008
    Messages:
    125
    Likes Received:
    76
    Location:
    In your mom
    Is anyone else calling BS on this one? 450% return?!? David Blaine must have giving you the heads up in Jan of '08, because EVERYONE who was unfortunate enough to own a mutual fund last year got hosed. 80% huh? Come on dude, go peddle your bait somewhere else.
     
    • Thanks Thanks x 1
  5. SpellZ

    SpellZ Regular Member

    Joined:
    Feb 8, 2009
    Messages:
    357
    Likes Received:
    312
    Location:
    Toronto, ON
    @pdaguy9: I really want to PM you, but at the same time I don't.. Simply because I just got a few questions to ask you and if anything positive comes out, you might as well get a 'Thanks' BUT... With the stocks jumping up and down, here and there...

    .. Umm.. What is a good MINIMUM amount to put down for investing?
    + Would you recomnd any books to read up, etc?



    I just want to have $1 Million in a bank, and somehow get 7% return, so that with out me LIFTING A FINGER I will get $70,000 annually.

    Rich get richer.



    @predayshus: LOL@ "go peddle your bait somewhere else" LOL :(
     
  6. matapples01

    matapples01 Regular Member

    Joined:
    May 15, 2008
    Messages:
    358
    Likes Received:
    208
    So you're 23, have the world by the balls, are pulling in 30K+ a month, knocking down 450% in returns are buying a Lamborghini and yet you're looking to spend time making and selling an ebook because? Please don't give us any of that "out of the goodness of my heart" or "I've made so much I just want to share the love with everyone else" bullshit either.

    If you want to create the book, do it and post it for free for people. If you're that rich and philanthropic you shouldn't even notice the couple hundred bucks you miss by not selling the book right? Can't wait to see it in the download section...:rolleyes:
     
  7. Quicksilver.FX

    Quicksilver.FX Newbie

    Joined:
    Feb 9, 2009
    Messages:
    22
    Likes Received:
    2
    Occupation:
    CEO of Nexon America
    I agree the stock market as a whole is jumping up and down but if you pay attention to specific ones not all of them are going for a roller coaster ride.
     
  8. jinjangjoe

    jinjangjoe Newbie

    Joined:
    Jan 14, 2009
    Messages:
    34
    Likes Received:
    6
    Location:
    New York, NY
    This is the wrong forum for this discussion. If you want to talk about investing and trading, go to places like Elite Trader. Over there people know more about the subject and you can't easily pull wool over their eyes. OP's post would be shot down immediately in those forums.
     
    • Thanks Thanks x 1
  9. rgrmatt

    rgrmatt Newbie

    Joined:
    Dec 18, 2008
    Messages:
    34
    Likes Received:
    10
    Occupation:
    Investing
    Location:
    Texas

    lol If you actually read my post, I am good with finances and analyze credit spreads, unemployment and RGDP growth and sold my shares in the very beginning of 2008. Done trying to debase my thread and failing?

    One of my Mutual Funds:
    http://i67.photobucket.com/albums/h310/rgrmatt69/BHW.jpg

    One of my Hedge Funds:
    http://i67.photobucket.com/albums/h310/rgrmatt69/BHW2.jpg
     
  10. pdaguy9

    pdaguy9 BANNED BANNED

    Joined:
    Sep 5, 2007
    Messages:
    120
    Likes Received:
    98
    You can start investing with any amount, be it $50K or $500. How much you have will determine where to put it. If you want to do as the OP says and invest a bit every month, then I would suggest doing it in an index fund at Vanguard or Fidelity. Don't worry where the market is or where its going. History shows us that in the long run (25-35 years), you should do very well.

    If you have a large chunk of change to invest, I would suggest hiring a manager to help you with it. Amounts for this are typically $100K and up.

    To gain a decent knowledge of stock investing read The Motley Fool - the first book they wrote. The strategy they present is a bit outdated, but the book is very good in general.

    Also read every letter Warren Buffett has written to the shareholders of his company Berkshire Hathaway - you can find these letter on the Berkshire website. This can give you an insight as to how a great mind thinks about business.

    Read the book The Intelligent Investor by Ben Graham. Graham was Buffetts professor and taught him a lot about investing.

    hth
     
    • Thanks Thanks x 1
  11. rgrmatt

    rgrmatt Newbie

    Joined:
    Dec 18, 2008
    Messages:
    34
    Likes Received:
    10
    Occupation:
    Investing
    Location:
    Texas
    "I have no idea what I'd sell it for, but probably next to nothing as that isn't my primary goal here."

    Please learn to read and stop calling BS on something you don't understand. By the way, what are you generating monthly? Thought so ;)
     
  12. pdaguy9

    pdaguy9 BANNED BANNED

    Joined:
    Sep 5, 2007
    Messages:
    120
    Likes Received:
    98
    Some emerging markets such as Russia, India and China have done those types of numbers over the last 6 years or so. If you had the right funds that is and got out in January of 08.
     
  13. SpellZ

    SpellZ Regular Member

    Joined:
    Feb 8, 2009
    Messages:
    357
    Likes Received:
    312
    Location:
    Toronto, ON
    So if you were in.. I guess.. YOUR SHOES
    Would you rather save up to 100k and then invest? Or start investing with whatever money you got
     
  14. rgrmatt

    rgrmatt Newbie

    Joined:
    Dec 18, 2008
    Messages:
    34
    Likes Received:
    10
    Occupation:
    Investing
    Location:
    Texas
    Yeah, the making money forum DEFINITELY isn't suitable for investing, or any other viable platforms for generating wealth, but e-whoring is...right ;)

    Come on guys, if you are going to try to question my integrity, at least cite something in my post and refute it. Otherwise, go to DP and join the rest of the IMers making $500/month.
     
    Last edited: Feb 19, 2009
  15. pdaguy9

    pdaguy9 BANNED BANNED

    Joined:
    Sep 5, 2007
    Messages:
    120
    Likes Received:
    98
    I would suggest investing what you have now. Time is your friend in investing.
     
  16. rgrmatt

    rgrmatt Newbie

    Joined:
    Dec 18, 2008
    Messages:
    34
    Likes Received:
    10
    Occupation:
    Investing
    Location:
    Texas
    Start investing now and cost average each month. Markets such as Brazil, China and India are extremely volatile and even if you cost averaged during the Great Depression, you would have realized a 7% return.

    If you are worried about losing money, try Vanguard Prime Money Market Fund which returns approx 5% annually and is the safest (besides municipal securities) investment you can make.
     
  17. rgrmatt

    rgrmatt Newbie

    Joined:
    Dec 18, 2008
    Messages:
    34
    Likes Received:
    10
    Occupation:
    Investing
    Location:
    Texas
    Yep, obviously the pinnacle was October 2007, but oh well. That Hedge Fund I posted was a Russian Energy Fund that just took off. I have been shorting the DJIA recently. How about you?
     
  18. tooslim

    tooslim Regular Member

    Joined:
    Dec 12, 2008
    Messages:
    366
    Likes Received:
    84
    Location:
    California
    you can pick up fortune magazine and every year they have an investors guide in the january issue. you might be able to find one but there is a lot of info on how to buy and sell stocks of your own and which are stable ect.
     
  19. pdaguy9

    pdaguy9 BANNED BANNED

    Joined:
    Sep 5, 2007
    Messages:
    120
    Likes Received:
    98
    Ummm... try 0.22% current yield.

    Money markets are not safe unless they are insured. Read up on The Reserve Funds. They were the largest money market firm in existence. They broke the buck late last year and many people lost money in their money markets.
     
  20. pdaguy9

    pdaguy9 BANNED BANNED

    Joined:
    Sep 5, 2007
    Messages:
    120
    Likes Received:
    98
    Okay you guys want some professional shit here? Here you go...

    Right now there is a huge disparity between the yields of AAA rated securities such as Treasuries and High Yield bonds (junk bonds). Its one of the largest differences in decades. Something like 10-11%. When it reverts to the mean, the difference will be like 5% or so.

    How did this happen? When the crises hit, people took money out of everything and threw it into Treasury bonds because its the safest thing in the world. That meant the price of Treasuries skyrocketed and the yields declined. High Yield bond funds also were affected. People took money out of them so the price of the fund declined and the yield went up.

    So how do you invest for this? You buy High Yield bond funds now. You get a 10% yield on your money while you wait for your fund to increase in value.

    Why would this happen? If things revert to normal at some point, confidence will be regained and people will go in search of better returns. They will buy High Yield bond funds and the price will go up.