Free Capital - Self Made Millionaires
What do self-made millionaires?
Investment professionals and their strategies are written in a lot of books. Successful private investors say the books are a rarity, however. An exception to this investment books of the flock that Guy Thomas's book Free Capital: How 12 Private Investors Made Millions In The Stock Market.
Capital stock has been written, Guy Thomas made on the basis of personal interviews. It's about 12 different private investor's story - how they gathered more than a million of assets by investing in equities. A big part of property is an investment of several millions.
No one book of 12 people is not known. Hard-paid, which would have earned a good miljoonansa earned income. And none have been an entrepreneur, who would have received large sums by selling the company. Large inheritance is not much you want to hit.And for anyone that was involved, that would have lived a meager lifestyle as possible.
12 different investors - 12 different ways to invest
One third of the people are former professionals from London City, another one-third people with a vocational qualification and the last third of those that stopped going to school at age 18 or before that. Most of them left the day's three-and four-twenties in order to become full-time independent investor.
Backgrounds of people are therefore very different. Stock market and investing is one of the most equal places in the earth. It does not matter whether a high-educated, male or female, skin color other than white or young or old age. Investing offers everyone the same opportunities. Exchange does not care about who owns the shares. Each of us is as good opportunities to acquire wealth by investing. Stock markets do not discriminate against anyone!
If the people of backgrounds and training vary dramatically, so will also differ from their usual place. These osakemiljonäärien used by the investment strategies are very different, and better reflect each of their backgrounds, personalities and strengths. Some are very long-term investors, and make only a few trade a year. Some are short-term traders were making a number of shops every day. One makes the analysis from the top down (top-down) and the second from bottom to top (bottom-up) from a single company. One big difference is also used for hashing. One of the millionaires to keep only a few shares at a time.
The differences between the various investors is important to note. We have a wide range of investors. But it is also, fortunately, a number of different ways to invest. Noteworthy is precisely everyone to find it in an appropriate way to invest in yourself. It is what works for someone else does not fit at all to someone else. This is also one of the funniest things you are investing. There is no single right way (tm) to invest! Each different method has its pros and cons. That's why it's good to keep in mind is always open to new things with.
Investing is not confrontational passive or active investment between. Such discussions, attendance is not very fertile, and easily goes inttämiseksi - his own foxhole shouting. The mind remains locked and does not afraid of his own vision of fairly challenging. I admit this myself openly collapsed. The world is full of what the different investment strategies and, although it would appear that one of the presented method seems to oneself totally crazy can it complements perfectly the other investor's arsenal. Everything should not knock right away. Give others the opportunity to present different points of view even if they do their own thoughts would fit. Someone else that they can sit on the glove. Investor it is possible to pass a number of different paths. All of them can still be exported to the same destination, but only in a different way.
Red wire. What do millionaires?
Although the book Free Capital millionaires all have different backgrounds and different way to invest is the unifying factors in a surprisingly high. What do all these self-made millionaires is? Identifying these issues to give an interesting perspective.
1. Be an investor
Each book combines a strong person to be the attitude of investors. Being an investor means all the simplicity that it is ready to transfer income and expenditure, ie the difference between the freedom of capital investments. Great part of the book is meant millionaires modest savings, putting the stock market on their own small salary. Everyone has to always start somewhere. Furthermore, future millionaire is to start collecting the property from scratch. Just like anyone else.
2. See the future
Even an early age has brought together a book of investors focusing on the future. They have kept learning, earning, saving and the importance of investing for the future. Past is not worth worrying about too much but the eye is a good idea to keep some distance away.To make their own decisions depending on how things affect your future. Continuous learning is important in life.
3. Place the small-cap companies
All except one of the book osakemiljonääreistä focused on small companies (micro / low-cap). The book made millionaires invest mainly in the lowest 10% of the market value of companies - the remaining 90% of the available market for the shares they left aside. I have a small market capitalization companies, the benefits of small investors by the past, and this is a good reminder of its advantages. Value of the investor's road blog is also good for writing micro-cap shares the virtues of.
4. Be tenacious
Nearly all the millionaires of the book were for years the market bad or mediocre returns.Instead, they would have thrown the towel and given up, they took the mistakes learn from them. Nobody's going to share a millionaire in one fell swoop. The road is long and bumpy.Failures through the experience gained and steered investors eventually learned to success.
5. Aim for the freedom of money - do not wear a higher
Investors in the book lived in a modest way of life in relation to their investment property.They saw their freedom as a source of money rather than a tool looks through the consumption of their own wealth. Nobody wanted to invest, because that would just spend more. Instead, money was seen as a tool to implement their own freedom.
6. Financial leverage? No thank you!
Used to leverage investments in debt was not very great vogue. Their own investments, the lever was used in only a few.
7. Make your own investments
Each book of the investors made their investments independently. They do not seek help from other investment decisions, but make the analysis, background investigations and the decisions themselves. One, it is not known. "Team player", but its the complete opposite.
8. Investing is not a science
The book investors relied very simple rules and analysis. Placement should not be unnecessarily complicated, since it is not. All investors in the book had been rejected by academics so beloved of modern portfolio theory (MPT). None of the papers relied on investments with quantitative analysis, although a few had a strong background in the circuit.
A large share of luck?
Each book home brewed millionaires considered himself lucky. This level of investment success in what they have been calls to ban the luck kicks. Luck plays a role in each of us in life.
I think happiness is, however, two different types. There is a chance based on pure luck, such as the Lottery. Getting big lottery win is based entirely on irrational ture and we can not affect the possibility of victory than the vanishingly small.
Then there is this second kind of happiness. We can expose ourselves to different life onnenkantamoisille. The more and more we do this the more likely it is also the face of good luck. For example, by making investment in exposing ourselves to the stock market for long-term possibility of a positive return. Bad luck, however, the investment is negative.Instead, it is certain that if we do not take part in the market at all we will not be exposed to that for a positive return on presumption.
It is for this I think is also a question of the 12 shares the case of a millionaire. They are all knowingly expose themselves to the possibility of a more prosperous. The fact that each of them has been successful in part, is pure luck, but part is also the fact that they have persistently been exposed to good fortune. Without good fortune, but the hard work the result would have been, perhaps also a good idea, but not the only one of the great fairy-tale than what they are now ended.
Millionaires unites watching I can not be mirrored without the factors that were found in their own investments. While there is currently no investment income to reach kerskailemaan can I find a list of many points of convergence in their activities. I try to invest all excess cash (item 1), to learn from their own investment decisions (section 2), insert the strategy of a small market capitalization companies (section 3) to give (so far), up (item 4), seeking for economic independence (see paragraphs 5 and 2). I do not use excessive lever (item 6), I do own investments (section 7), and modern portfolio theory, I have shot down the blog in a separate article (section 8).
I have set myself lucky potkulle exposed. Yet it has not come, but still stubbornly jaksan expect. In the meantime I will continue working behind expose myself to more and more good tuurille.
''I find the harder I work, the more luck I seem To Have.''
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