Making a million made easy

Sunday, February 19, 2006

News article: Making a million made easy

Just came across this article in TheAge Australia and thought it would be a good article to share with you guys. For your info, Kerry Packer, the richest Australia, passed away recently. For those who have the time, it is good to read the whole lot but for those who don't, here are the quotes I would like to share.

"The stockmarket is not life changing — 9.5 per cent per annum plus dividends is not going to turn you and I into Kerry Packer. But there are plenty of people in the stockmarket that have made it. Maybe not the billions, maybe not the millions, but plenty the million."

"You need patience. If you try to rush your financial transformation you will fail. Patience is about having realistic expectations. You won't get anywhere trying to make money every day. I've seen people in the market who spend most of the time doing nothing. Just sitting watching things going by. On the lookout. They don't try to generate opportunities out of nothing, they just wait for them."

"The mistake too many people make is to pursue opportunities frantically. Let them come. They always do. If you miss one, there'll be another."

"Terrific gains come from terrific information. Information is everywhere but most people don't use it, probably because they haven't got the time. There is plenty of money to be made out of the information gap. Knowing more than anyone else, because you bothered to do the work. Investssmart: Best describe the situation in Malaysia. Investors don't bother doing any research. They just buy TIMECOM, the billion dollar company which has never made an operating profit.

"You will not make extraordinary gains without investing in volatile (small and risky) stocks. The only way to do that is to narrow your odds significantly, minimise the risk. That means knowing what the company does. Knowing where it is in its development. Knowing what's ahead. Knowing more about it than almost anyone else. Getting to know people in the company. Talking to them. Only then can you take a big slug in a small stock that might see extraordinary gains."
Investssmart: This does not necessarily work in Malaysia because of syndicates and also because people tend to lie a lot more.

"You need mates. Kerry Packer had them. You will not make a fortune in the stockmarket by shutting yourself off in a small dark room. Information comes from mates. Opportunities come from mates."
Investssmart: Can I be your mates? :)

"Patience, information and mates. Your recipe for success."

"This isn't how you become a billionaire. The only real way to make a fortune is to build a business, build assets and employ people to build them for you."
Investssmart: That is very true. Warren Buffett is not an legendary investor for nothing. Being a multi-millionaire is enough for me.

Disclaimer: This report is brought to you by Investssmart, an unlicensed investment adviser. Please exercise your own judgment or seek professional advice from your remisiers. By law, they are the experts. I am not responsible for your investment decisions.

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