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The Difference Between Getting Wealthy & Staying Wealthy

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  • #1

    The Difference Between Getting Wealthy & Staying Wealthy

    Was perusing this article: https://www.kiplinger.com/personal-f...-what-you-know and I noted the story of Jesse Livermore. With the takeaway that the concept that getting rich and staying rich are different skill sets - summarized as "save like a pessimist and invest like an optimist".

    I think the tone and tenor of this thinking is consistent (live below your means, avoid debt and invest a solid portion of your income) with many on this board, but am interested in everyone's perspective on this and whether it resonates with your approach to money management.
    “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
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  • #2
    Originally posted by srblanco7 View Post
    Was perusing this article: https://www.kiplinger.com/personal-f...-what-you-know and I noted the story of Jesse Livermore. With the takeaway that the concept that getting rich and staying rich are different skill sets - summarized as "save like a pessimist and invest like an optimist".

    I think the tone and tenor of this thinking is consistent (live below your means, avoid debt and invest a solid portion of your income) with many on this board, but am interested in everyone's perspective on this and whether it resonates with your approach to money management.

    Take more risk to get to where you want to be .. but when you get there .. try like hell to preserve that wealth. That's why wealth managers like to target HNW individuals with "asset protection"

    same goes for business .. Facebook was a great innovator to overtake myspace .. took a lot of risks .. now they just copy the new trend .. and even if that fails .. they just buy their competitor.

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    • #3
      Originally posted by srblanco7 View Post
      Was perusing this article: https://www.kiplinger.com/personal-f...-what-you-know and I noted the story of Jesse Livermore. With the takeaway that the concept that getting rich and staying rich are different skill sets - summarized as "save like a pessimist and invest like an optimist".

      I think the tone and tenor of this thinking is consistent (live below your means, avoid debt and invest a solid portion of your income) with many on this board, but am interested in everyone's perspective on this and whether it resonates with your approach to money management.
      I was just reflecting on some of the threads on this board back in March 2020 when every day the market kept going lower. A lot of the threads were about buying stocks at discount prices.

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      • #4
        It's hard for me to find the article particularly enlightening. Reading it was basically a resounding "duh, no kidding." Just like in literally any other sphere, knowledge is only worthwhile or meaningful when it is applied. Without application & follow-through, anything that you know, the best of intentions, our whatever else will do nobody any good. But you don't need to know exactly why something is good/meaningful/worthwhile in order to follow the practice. Bottom line: DO SOMETHING!

        My cynical side connects the premise of this article (that these ideas are new & remarkable) to the lunacy today with college... Just because you've got a degree, it means nothing if you're not going to apply it & make use of it somehow (as occurs all too often).

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        • #5
          I think the article just reiterates the same stuff we preach here all the time. Don't try to time the market. Don't panic when there is a correction. Don't sell low and retreat to cash. Just keep investing month after month after month no matter what. Tune out the noise and just keep at it.

          I thought the same thing as L2P about how back in March, many of us were looking for buying opportunities, not running for the exits. That's when I picked up my shares of JETS which I just sold last week for an 81% profit. And I'm still holding the AAL I bought then which is up nicely from what I paid.

          The emotional part of investing is hard. It's hard to turn on the news and see that the market is down 600 points. It's hard to log into my Vanguard account and see that our balance is down $20,000 from 3-4 weeks ago. But I know that it's just a blip in the long game. We don't need that money tomorrow. Even if I were to retire in a year or two, we still need that money to keep growing for 25-35 years. What it does today or tomorrow or next week just doesn't matter.
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

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          • #6
            The hardest thing for me when I invest is to take my losses and lumps without trying to chase what I lost. I bought some Fang awhile ago and sold it. And, literally gone from the $20's to $85. When I sold it, I made a bit of money but then it took off and i just get sick looking at it! lol. But, I have to move on. I didn't lose money on it, but man i really sold it far far too early

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            • #7
              The article seems to be the basic overall tone of many conversations and advice here from over the years.

              Money is a mindset more than a number.
              You can achieve wealth and success by just consistently saving for a long period of time.
              There is no real genius needed.

              A lot of money won't make you wealthy
              Ask most former professional athletes and lottery winners.

              Brian

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