***Drool, slurp, more on money and being dismal***
First, is it Madeline or Madeleine? I've seen competitive spelling in reputable printed media. Second, the anti-nukes law in Noo Zeeland is more an assertion of independence these days than an irrational belief that U238 is likely to end the world, either in missiles or engine-rooms. As the more percipient of you might have noticed, not all Kiwis are prone to toady. Famous celebrities like that because they are studiously ignored here or given a fond hello because somebody mistakes them for a pal they can't quite place = so better be friendly. So they like to come here to get away from the papparazzi [sp?].
Anyway, isn't what you wrote what it's all about Renby? Just multiply you by a few billion and make the numbers bigger or smaller and that's about it.
It's all about who has the right to allocate capital. We all try, but some get stuck in the sherry store, while others invested in Microsoft years ago [not Ramsey Su, mentioned here for no good reason, but his mother-in-law did, who has bragging rights from here till kingdom-come, which might not be too far away if the said rights are exercized excessively].
So here we all are, seeing if we are the ones who should be in the coal face club or in the capital allocation ranks of the anointed. You'll find out soon Renby. So will I. So far, so good for me. Not long to go now = getting long in the tooth. You seem to have it figured out pretty well.
Most people lack allocating confidence, so they dig some dough at the coal face then find somebody to do the allocating, via banks, mutual funds or a friendly advisor. You, me, SurferM, Jon and all compete to see who gets to be the allocator. Since we all have little brains, able to only handle a few things at a time [as shown by reading the threads people cover], there is plenty of room for many allocators. We compete by being the high bidder on interest rates and being right on buy/sell prices. But plenty come a gutser - often fired with little notice by a margin call from a broker.
You are obviously considered very credit worthy. The 7000 GSTRF loan is your problem alone, because you'll be sold out if you were wrong, but in the holistic health centre, the others aren't carrying too much risk. Land and buildings can always be sold, equipment retrieved. Your $200,000 partners have confidence in you and use your creativity, but they are carrying the can if failure, but if their judgement is right, they'll be well rewared. It looks like a great idea on screen.
Being a member of the medical guild, you probably have excellent income prospects. So, nothing can go wrong, can go wrong, can go wrong...
If you prove to be a good allocator, and in this instance, the IPR creator, you will do really well.
But it seems you are suggesting that all this money available to you on tick is likely to presage a crash if replicated big time, which it is. I agree in as much as peaks and troughs seem to be part of human psyche, reflected in mania and gloom in investments and when debt gets too big, then the bad allocators take a pasting, sort of like clearing out a herd of gazelle by having a stampede and seeing which ones are too crippled, old, or anything else, so being left behind as lion dinner.
So, what I do, is keep my debts at a cowardly low level, so when the stampede starts, I'm not conspicuous and vast transfers of wealth to creditors will happen before they get to me. I call cowardly 20% borrowing. Actually, I think 20% is daring, but I feel reasonably safe at that. I'll recheck SM's post 13187 to see if that complies.
Long, personal, prolix and too bad! I find SurferM's, Gregg's, yours and other thoughts very valuable. Thanks.
Mqurice
[Not lecturing you on how it works Renby, just thinking out loud, trying to consolidate my understanding and looking for contrary ideas] |
