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Old 07-26-2007, 10:45 PM   #21
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All the people I know who have been very successful and made gobs of money work in the only field that is not taught in College. Sales.
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Old 07-26-2007, 10:50 PM   #22
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Originally Posted by TromboneAl View Post
Then his uncle died and left him 3 million dollars.
Good oldie Al...you crack me up. Is it just the looseness of having the responsibility of the er forum status forum removed from your shoulders?

I know a buttload of rich people, all got that way off the company stock. One woman I know got there with single company stock AND LBYM. With a net worth north of $6M she was still living in a crappy one bedroom apartment and driving a 9 year old basic model car.

I'm actually friends with two people who have made it to the "fortune wealthiest 40 under 40" or whatever the heck the list du jour was. Both CEO's of well known internet startups that are still hanging in there.

i guess that goes back to the conversation from yesterday...concentration might help you 'get there'...dilution probably helps you 'stay there'.
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Old 07-26-2007, 11:20 PM   #23
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It's true many people who had exercised their stock options before the internet bust became quite wealthy. I knew one guy who went to a telecom startup received a stock option. The option if exercised in paper was worth closed to $1 million after 9 months of employment. However, he had to hold on to it for at least a year. Just 2 months before the one year holding period, the bust came. His option is almost useless now.
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Old 07-26-2007, 11:27 PM   #24
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My sister inlaw's husband became a dot com millionare. They wisely took a couple million of the money and bought a house in the Bay area cash. Then the remainder of their paper wealth disappeared in the bust.

It truly was a lot of luck for those who made and kept their fortunes in the internet boom/bust. My sister in law's husband shared many stories of those who truly lost it all. His own brother never was able to ride the wave, suffering the misfortune of working for companies that never quite got going.
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Old 07-27-2007, 05:30 AM   #25
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Well I am sure if we make a survey on the people who have managed to accumulate a lot of wealth one thing would become clear and that is the stock market has had a fair share to play in their development. This I have also seen amongst the people whom I know personally. But then as some of them have managed to succeed with the help of pure luck there are others who did this after a thorough study of the stock markets. Whatever be the case no one can deny the role of these.
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Old 07-27-2007, 07:48 AM   #26
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I dont think everyone has done it with the stock market....I am not sure why you would say that after folks posting up to this point with stories of RE, inheritance, and businesses?
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Old 07-27-2007, 07:57 AM   #27
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in the 1970's, my uncle was the CFO of a small company that stored data electronically. They were bought out in 1979, right before PCs entered the market. He never really held a steady j*b again. (Had a few attempts, but didn't get along with others too well - with the attitude that my way is the right way). They lived in Westport CT and later moved to Denver with a second home in Vail. (in their 70's now and have sold the Vail home)

Anyway, no one ever said he was retired! Always "just looking for the right opportunity." The mantra was so strong, that I never even put the RE label on him until I joined this board!
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Old 07-27-2007, 08:03 AM   #28
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We had a grad student once who inherited $4 million (from a childless uncle) about the end of his first year in the program. His advisor tried to convince him to stay in science, but after a couple days the student decided he'd rather go into managing his money. He disappeared back to LA and we never heard from him again.
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Old 07-27-2007, 08:10 AM   #29
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I know oodles of rich people, including two billionaires. Some inheritances, some stock options, a few CEOs, but the uber rich own their own companies.
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Old 07-27-2007, 08:25 AM   #30
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I dont think everyone has done it with the stock market....I am not sure why you would say that after folks posting up to this point with stories of RE, inheritance, and businesses?
(shaking my head). Out of my examples, none would consider themselves big investors in the stock market. They have had mediocre results and would rather stick with what they know best.
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Old 07-27-2007, 09:22 AM   #31
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I also had a great-uncle from the Ozarks, that drove a truck, and eventually moved to Texas and started a small trucking company. He grew his small company into a rather sizable fleet, specializing in tankers hauling petroleum products. He got involved in the oil business and made his fortune in it.

He retired in his 50's, and moved back to the hills of south-central MO, where he'd grown up. He always said that his goal was to live happy, fish a lot, and squander every red cent he ever made! He succeeded completely.

After he passed away in his early 70's, his estate was settled, and myself, my 2 siblings, and 1 cousin inherited everything that was left. We each ended up with something just south of $1000. And that was after the sale of his dinky, little, old house and his VW Beetle.

He always had deep pockets when it came to his friends, neighbors, and relatives. No one he knew ever had to to do without any of the necessities.....and sometimes the luxuries.
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Old 07-27-2007, 09:49 AM   #32
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Four guys I worked with at my former company formed a tech startup and did very well when they sold it a few years ago.

I also know a number of people who RE on stock options at my current company. A couple of them came back after the bubble burst.

I worked with one guy who made his first million before he exercised any options. He was the ultimate LBYM man, lived in a small condo, drove a used Honda, didn't take big vacations. He was also a big risk taker in stock investing but did thorough research so they weren't wild risks. At work they used to give out a lot of t-shirts for new or complete products, and he almost always wore those shirts. I remember one that was just hideous and I said that no one would ever wear it. He did. I wouldn't have enjoyed living so frugally. He finally got married and I think his wife loosened him up some. She was also worried about the stock market and begged him to get out, which he mostly did, right before the bust. So even though we figured she was the type to burn through a lot of his money, she probably earned it.

At the resort community where my second home (and eventual only home) is, there are a lot of people who did or could have retired early from stock options as execs, or starting their own business. I went to dinner with some of them one time, and one of the guys picked up the tab. Everyone offered to chip in, but he wouldn't hear of it. Someone later told me that he had sold his business a couple years ago. When they went into the negotation meeting with the buyer, he and his partner had agonized over what to shoot for, and finally settled on $X as their goal. Early on, at the first talk of money, the suitor offered $3X. The two must've put on a good poker face and stared, pretty much dumbfounded. The suitor hastily added "of course, that's just a starting point."
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Old 07-27-2007, 10:08 AM   #33
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Since I am a tax accountant, I have lots of wealthy clients - mostly business owners.

The most interesting one that I came across was a production worker at our local jeep plant here in Toledo. He never married, never had kids and lived in the same house for most of his life. I got called in after he died and his relatives weren't sure what to do with all the stock certificates they found in his house.

It turned out he had over $4,000,000 of stocks he had accumulated over his life as a production worker. All of these were individually held (not in a brokerage account) so his tax return was a nightmare. A big chunk of his wealth went to the government as estate taxes, but his nieces and nephews still did pretty well.

So you can make big money just by LBYM, but I'm not sure I would recommend it.
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Old 07-27-2007, 10:21 AM   #34
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Whoops, one of my old friends who was a wealthy ceo is now under indictment for backdating stock options, and is facing 20 years in prison.

I guess 47 brazillion dollars isnt enough.
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Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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Old 07-27-2007, 10:51 AM   #35
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I know a multi-millionaire who had almost nothing, and this is his story:

He bought an apple for 30 cents, shined it up and sold it for 60 cents. With the profits, he bought two apples, made them look nice, and sold them for $1.20. Then his uncle died and left him 3 million dollars.


Can't wait till apple picken time! But wait, I've run out of uncles.
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Old 07-27-2007, 01:00 PM   #36
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My ex's uncle's story is remarkable.
He is in his 80's now. He came to this country with nothing and did not speak English. He worked 7d weeks 16 hr days and bought a grocery store. Many years of 7/16 sweat equity but add in wife and children working at grocery store. They bought an apartment complex that basically occupied a city block half a mile from Fisherman's Wharf in San Francisco. That was way before the latest housing boom.
My guess is his networth is over 30M.
But you'd never guess by their lifestyle.
Hardly ever travel, stock-up on toilet paper, sofa covers...

My salaryman neighbor has a new Lexus and a nice ski boat.
So who has it better?

I am not sure.
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Old 07-27-2007, 02:11 PM   #37
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I have met a lot of people who made a million or so selling their tech stock options after they left/sold companies . Then they invested that money and now are very wealthy.

My dad is well off because he is a frugal SOB who sold his calif house that he had owned for around 15 years and made a lot of money, then invested and rented out rooms to his deadbeat son, and is now sitting very pretty with a nice estate to leave to his other (non-deadbeat) kids (YAY!)

I also know this guy who inherited a lot of money then his wife insisted that they continue to live below their means, let the invested money grow. He ended up very wealthy, wealthy enough so that when they divorced he was able to financially set up his ex-wife very nicely, attract a very attractive replacement wife and buy her a McMansion. His ex-wife continued to live below her means, saving and investing, learning a lot about personal finance. She is now more financially secure than she was at the time of the divorce.

I think the key ingredient, at least in my examples, is that no matter how you acquire money, earning or inheriting or whatever, the key to keeping it is to make smart decisions and not go hog wild keeping up with the proverbial Jones who have not been saving at all, instead buying houses they can't afford, going on way too expensive vacations and buying anything and everything they want.
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Old 07-27-2007, 02:27 PM   #38
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I have met a lot of people who made a million or so selling their tech stock options after they left/sold companies . Then they invested that money and now are very wealthy.

My dad is well off because he is a frugal SOB who sold his calif house that he had owned for around 15 years and made a lot of money, then invested and rented out rooms to his deadbeat son, and is now sitting very pretty with a nice estate to leave to his other (non-deadbeat) kids (YAY!)

I also know this guy who inherited a lot of money then his wife insisted that they continue to live below their means, let the invested money grow. He ended up very wealthy, wealthy enough so that when they divorced he was able to financially set up his ex-wife very nicely, attract a very attractive replacement wife and buy her a McMansion. His ex-wife continued to live below her means, saving and investing, learning a lot about personal finance. She is now more financially secure than she was at the time of the divorce.

I think the key ingredient, at least in my examples, is that no matter how you acquire money, earning or inheriting or whatever, the key to keeping it is to make smart decisions and not go hog wild keeping up with the proverbial Jones who have not been saving at all, instead buying houses they can't afford, going on way too expensive vacations and buying anything and everything they want.
If the Cali real estate market crumbles, I am emtpying out the bank account and heading west for the scraps. No way would I pass on that opportunity. I am still waiting for the final runs of the stupid real estate tv shows and hopefully everyone will become totally disinterested in it.
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Old 07-27-2007, 02:36 PM   #39
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Whoops, one of my old friends who was a wealthy ceo is now under indictment for backdating stock options, and is facing 20 years in prison.
I guess 47 brazillion dollars isnt enough.
To some people it's just a scorecard.

Sounds like you need a new set of friends...
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Old 07-27-2007, 02:43 PM   #40
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Well shoot, I worked for the guy about 15 years ago and havent seen him in 10.

Really sharp guy. But he did have a little weasel streak in him.

Dang, I just looked again...before the company kicked him out he had a net worth in excess of a billion dollars.
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