Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (11438)	11/27/2001 4:16:50 PM
From: Maurice Winn	Respond to of 74559

<The idea that wealth is created by borrowing and taking risk is obvious to me now, but I take issue with Greider’s presumption that wealth cannot be created by working hard and saving. It is very difficult to do so- most suited for those of a Stoic mindset, and much easier without the responsibilities and costs of raising a family. But not impossible. I think it fair to say that an individual can accumulate a million dollars by working hard and saving, but that to make the leap to the multimillion level requires the use of financial leverage, and the embrace of debt for investment. > Mark, I can say that working, saving and investing works just fine, even with 4 children to raise. Yes, a stoic mindset helped [though I never felt we were missing out on much]. Retirement at 40 was nice. I was doing fine until I had the foolish idea to borrow a Tonka Truck full of Uncle Al's $$ to buy Globalstar shares. Borrowing was my downfall. Saving was my road to riches. Neither did I ever have a high pay rate, being just a small cog in the corporate machine. Of course borrowing helps to accelerate returns, but that makes one vulnerable to the vicissitudes of markets and being forced to sell perfectly good companies at the bottom is not the road to riches. It also means one has to compete with other borrowers and do a better job with the borrowed money than they can, which adds another layer of difficulty and risk to investment. Learn, Work, Save, Invest, Spend. The Five Financial Factors For Freedom. Mq's 5F Theory. Mqurice