For someone your age, I find your knowledge to be outstanding! I am a retired engineer who has two ideas I would like to share with your community. At the age of 16, I was gifted a "Peter Wright"
anvil by a mature former German friend who was in WW1 (he was the kid who dynamited trees for rail fuel on steam engines). (William Riser was his name). I became so invested in blacksmithing that I pursued a career in welding. The anvil still sits in my shop, along with many other tools (lathes, saws, welders, and a DRO Bridgeport mill). I would also include "investments" to be in good tools if one's involved with a career path in the "trades". They will never get cheaper!
In the 80's, my father ran a "paper converting company" that was one of the largest in the Midwest, and a major backer "Dick Behr" had to sell us, as his scrap businesses needed additional capital.
We were investigated by the Pitcairn Group, even though we were far too small for their consideration. They gave my father a bound publication which I read, and the notable features I gleaned was "all the businesses that involved some "vice" that they would not invest in". They were obviously "faith driven", so much so that they built a college for the education of all family members to attend! The family Pitcairn had two (I believe) family members who sat on the Board of Directors. THEY WOULD NOT INVEST IN VICE, (businesses that involved tobacco, liquor, pornography, etcetera)! They obviously believed that "where you put your money is in those places in what you believe in!" I wonder if they invest in Treasuries or not?
Just something to think about!
Best regards, and keep growing and learning!
Thank you for sharing your mission stories, you are on a Great Journey!
Maxim, there is one major point that needs to be brought up about Warren Buffett. That is the fact that most of his investing was done with pre-tax money that were essentially free capital that came in to his various property and casualty insurance companies, commonly called "float".
Quick explanation of how it works: People pay insurance premiums in the expectation that if disaster occurs, they will collect. The insurance company takes the opposite side of the bet: They hope that a disaster never occurs to one of their policy-holders. If the policy never pays out, then the amount of the premium is a profit to the insurer, and becomes part of the company's float, which is free to be invested. The company did not pay interest to the policy-holder on the amount received as a premium, but earned close to 100% profit, tax-free. However, as an individual, your earnings have already been taxed, so you start in the hole by about 15%, relative to the company that gets to invest pre-tax money. This is the major reason that no one will likely match Buffett's track record. Or at least his pre-2000 record.
So there's no need to compare your investment success to his; it will likely come up short for that simple reason alone. But it does help to have a goal in mind when you start.
It is great that you are learning the methods of success. Improvement and learning and curiosity are foundational to that. I started investing about 20 years ago. I was successful, measured by money. I tried to use others to invest and lost a lot. So, I then decided that I better bite the bullet and learn how to invest . It is a lot easier than making it. And also somewhat distasteful to me. I used the same methodology that made me successful in business - improvement, learning, collaboration with Guru's, but not followers. I now have made millions in investments and most all goes to philanthropy. You will likely get there, keep it up.
A comment on education or schools. To think needs to be the goal. Blind reaction, pigeon holing, reactions, one-size fits all, is what you get. Actually life is easier if you don't have to think. You do need some education in order to think. Quotations by wise people are really enormous. I suppose there are certain professions that is not required, however I would guess that 90% of high school and college students do not fit that.
You have direct access to two of the best teachers. Your dad and Doug Casey.
Mr. Smith,
For someone your age, I find your knowledge to be outstanding! I am a retired engineer who has two ideas I would like to share with your community. At the age of 16, I was gifted a "Peter Wright"
anvil by a mature former German friend who was in WW1 (he was the kid who dynamited trees for rail fuel on steam engines). (William Riser was his name). I became so invested in blacksmithing that I pursued a career in welding. The anvil still sits in my shop, along with many other tools (lathes, saws, welders, and a DRO Bridgeport mill). I would also include "investments" to be in good tools if one's involved with a career path in the "trades". They will never get cheaper!
In the 80's, my father ran a "paper converting company" that was one of the largest in the Midwest, and a major backer "Dick Behr" had to sell us, as his scrap businesses needed additional capital.
We were investigated by the Pitcairn Group, even though we were far too small for their consideration. They gave my father a bound publication which I read, and the notable features I gleaned was "all the businesses that involved some "vice" that they would not invest in". They were obviously "faith driven", so much so that they built a college for the education of all family members to attend! The family Pitcairn had two (I believe) family members who sat on the Board of Directors. THEY WOULD NOT INVEST IN VICE, (businesses that involved tobacco, liquor, pornography, etcetera)! They obviously believed that "where you put your money is in those places in what you believe in!" I wonder if they invest in Treasuries or not?
Just something to think about!
Best regards, and keep growing and learning!
Thank you for sharing your mission stories, you are on a Great Journey!
Maxim, there is one major point that needs to be brought up about Warren Buffett. That is the fact that most of his investing was done with pre-tax money that were essentially free capital that came in to his various property and casualty insurance companies, commonly called "float".
Quick explanation of how it works: People pay insurance premiums in the expectation that if disaster occurs, they will collect. The insurance company takes the opposite side of the bet: They hope that a disaster never occurs to one of their policy-holders. If the policy never pays out, then the amount of the premium is a profit to the insurer, and becomes part of the company's float, which is free to be invested. The company did not pay interest to the policy-holder on the amount received as a premium, but earned close to 100% profit, tax-free. However, as an individual, your earnings have already been taxed, so you start in the hole by about 15%, relative to the company that gets to invest pre-tax money. This is the major reason that no one will likely match Buffett's track record. Or at least his pre-2000 record.
So there's no need to compare your investment success to his; it will likely come up short for that simple reason alone. But it does help to have a goal in mind when you start.
Yes! I am enjoying your updates. Investing in yourself is the wisest thing.Give it your all.
DO NOT BE CONTENT WITH AVERAGE
AVERAGE IS AS CLOSE TO THE BOTTOM AS IT IS TO THE TOP.
Thank you for sharing your time here.❤️
It is great that you are learning the methods of success. Improvement and learning and curiosity are foundational to that. I started investing about 20 years ago. I was successful, measured by money. I tried to use others to invest and lost a lot. So, I then decided that I better bite the bullet and learn how to invest . It is a lot easier than making it. And also somewhat distasteful to me. I used the same methodology that made me successful in business - improvement, learning, collaboration with Guru's, but not followers. I now have made millions in investments and most all goes to philanthropy. You will likely get there, keep it up.
A comment on education or schools. To think needs to be the goal. Blind reaction, pigeon holing, reactions, one-size fits all, is what you get. Actually life is easier if you don't have to think. You do need some education in order to think. Quotations by wise people are really enormous. I suppose there are certain professions that is not required, however I would guess that 90% of high school and college students do not fit that.