/biz/ - Business & Finance

[Anonymous No.17078021]

This guy says he has 3.5million stock investment portfolio but makes only 8k per month in passive income. Doesn't that mean it will take him decades until he makes that money back?

[Anonymous No.17078046]

its not about making your money back it's about always having income and leaving it for your kids. so in other perspective hes going to make infinite money with time

[Anonymous No.17078051]

Also your understanding of investment holdings and monthly return is wrong. Go read.

[Anonymous No.17078054]

how did somebody so stupid find their way to this board

[Anonymous No.17078063]

>>17078046
>>17078051
>>17078054
STOCK COPE

[Anonymous No.17078213]

>>17078021
>until he makes that money back?
OP, he doesn't need to make the money back, he can just sell his stocks. 2-3% annual returns is a bit low but I'm assuming he's holding pretty safe stocks.

[Anonymous No.17078248]

>>17078054
anon, this is 90% of the board since 2016
cryptoniggers have zero comprehension of the stock market let alone risk. Wait for 5 more years until the average age here becomes early 20s and you might see some improvements.

[Anonymous No.17078416]

What a seriously retarded post.

[Anonymous No.17078444]

>>17078248
>>17078416
why is this retarded though?

[Anonymous No.17078476]

>>17078046
>muh kids

[Anonymous No.17078502]

>>17078021
>Doesn't that mean it will take him decades until he makes that money back?
he can just sell his stocks if he wants his investment back, but yeah, it takes a long time to double your money with dividends stocks.

[Anonymous No.17078543]

>>17078021
>until he makes that money back

[Anonymous No.17078651]

>>17078444
Alright I'll bite.

When he bought the stock, he, well, received stock. Which means that there was net zero change in his wealth excluding taxes and fees as he can just sell it back for the same value.
What the stock gives him in return is
>dividends, which are typically 3-4% and are used to counteract the effect of passive inflation
>stock price movement, which is what will make his monetary value grow
Now, the growth is typically around 8-12% for the average portfolio and the question here becomes: why is he making such shit yearly gains when he can just buy a shitcoin and have +50% the next week? Because when he's investing in the stock market and diversifies his portfolio as he should, he turns the whole investing thing into a new area which is the act of investing into risk, not actual stocks. The strategy here is to pull the risk down as low as possible, to subtract the "casino" element from your investments, and to somehow still manage to make gains - his point IS to make this low of returns at the trade off that there's no risk involved into the process, it's literally just free money. The reason you should do this risk-minimalization approach is because you can 10x your money multiple times with crypto and then pay for all the gains by not cashing out and having it crash to some meme amounts, whereas you can just drop your investment into the stock market and forget that it exists indefinitely without ever going bankrupt except for the case where Russia nukes the USA.

[Anonymous No.17078674]

>>17078021
Define "make your money back" because that $8k/month will be only $2k/month in 50 years

[Anonymous No.17078695]

>>17078674
im fucking done with this board

[Anonymous No.17078725]

>>17078695
>Thinks you can leave
I know the Pajeets & Mutts make this place unbearable at times, but until we get flags or the mods range ban third world shitholes, they won't leave.

[Anonymous No.17078776]

>>17078651
>net zero change in his wealth

How He no longer has 3m to use because it is in stocks instead, which will take decades for him to get it back.

[Anonymous No.17078788]

>>17078651
It's free money? You mean he spent 3.5m to make 8k a month for 'free'?

[Anonymous No.17078804]

>>17078776
Yes but the appreciation of that $3m goes up by ~10% a year so he's effectively making $300k a year profit from his stocks.

[Anonymous No.17078845]

>>17078804
To me, that looks like he spent 3.5m to make it back in decades.

[Anonymous No.17078864]

>>17078788
brainlet, he still has his 3.5M, the 8k/month are just the free ROI on top of that.. it's like a passive income

[Anonymous No.17078870]

>>17078476
t. genetic dead end

[Anonymous No.17078872]

>>17078046
>MUH LITTLE COOMS ARE A GOOD INVESDMEND
cope

[Anonymous No.17078919]

>>17078864
He doesn't have his 3m? He spent it on stocks in order to make 8k a month.

[Anonymous No.17078925]

>>17078919
and he can sell his stocks whenever he wants to get his 3M back.

[Anonymous No.17078972]

>>17078925
he shouldve never bought them

[Anonymous No.17078995]

>>17078972
lol

[Anonymous No.17079003]

>>17078919
>what is compounding?

[Anonymous No.17079012]

>>17078995
>>17079003
spent 3m to make 8k a month. thats foolish and you know it

[Anonymous No.17079013]

>>17078972

[Anonymous No.17079018]

>>17078972
Yeah he should have spent it all in fake shitcoins. Having $8k a month that and $3 million that will go up by 5-10% every year must be fucking terrible. If I had 3 million I'd go on /biz/ and spend it all on the first coin I see being shilled

[Anonymous No.17079021]

>>17078972
he beats inflation. he makes around 3.2% per year. It must be some ultra safe fund.
he's still making 96k per year of passive income while you're posting on a basket weaving retard board wondering what ROI is.

[Anonymous No.17079023]

>>17079013
>>17079018
>>17079021
How long will it take until he gains that 3m back? 20 years or 30 years?

[Anonymous No.17079030]

>>17079021
How many decades until he makes his 3m back?

[Anonymous No.17079039]

>>17079023
he can sell his shares whenever he wants, today he can liquidate everything and have 3M. do you know how stock markets work?

[Anonymous No.17079058]

>>17079023
Why would he want another $3m? He's already got enough stock worth that. He's also got enough income where he won't have to ever wake up at 7AM to be a wagie. In order to blow up the $3m to $6m he would have to make risky investments that could potentially harm his easy life of just doing nothing and having enough money to live comfortably

[Anonymous No.17079080]

>>17079039
but what's the point in doing that?
>>17079058
no, he spent his 3m on stocks that give him 8k a month? youre being manipulative

[Anonymous No.17079108]

>>17079080
Yeah and unlike crypto those stocks aren't gonna crash down to negative infinity

[Anonymous No.17079114]

>>17079080
are you trolling, a legit retard, or 12?
let's not even talk about inflation, let's say he just let his 3M sits in a bank account. After 1 year he still has 3M. If he invest in stocks after 1 year he has 96k more.

[Anonymous No.17079138]

>>17079114
Maybe he thinks that once you spend $3 million on stocks that money goes away and you never see it again

[Anonymous No.17079168]

>>17079114
He doesn't have 96k more? He SPENT 3m on stocks. Yes he can withdraw it, but he's not going to do that.
>>17079138
It does, unless you withdraw it but then you no longer own the stock

[Anonymous No.17079211]

Im gonna do my best to clear this up. The man bought 3m in stocks diversified in a low-risk portfolio. He can get the 3m back at any time by simply selling the stocks in his portfolio, but he then forgoes the monthly dividends he receives.
The reason he didn't gamble his millions into shitcoins is because they have a tendency to flat-line and never recover. It's a sound investment strategy: diversify away the unsystematic risk as much as possible and ride the coat-tails of a bullish market. The reason it doesnt make sense to some of you tards is because you wanna YOLO your life savings on crypto instead of putting some of it aside and letting it grow. (Not shitting on crypto, its just not the only investment option out there)

[Anonymous No.17079215]

>>17079168
>He SPENT 3m on stocks
yeah and he EARNS +3.2% / year having those stocks. He can resell those stocks whenever he wants because it's a highly liquid market where he will always find someone willing to buy his shares. understood kiddo or you need a picture?

[Anonymous No.17079233]

unlike shitcoins, you dont have to sell stocks in order to make money from them.

[Anonymous No.17079244]

>>17079023
Yes it will take that long but he was probably in a dire situation. A lot of times when the jews know you have money they will come after you (Weinstein, Kobe Bryant, Trump, etc.). And don't even get me started about when women find out you have cash.

So he probably thought better to spend his 3.5 mil and guarantee 8k per month than walk around with a bullseye on his back, lose all his money and have 0 income. He's pretty smart by 2020 standards.

[Anonymous No.17079247]

>>17079168
You CAN withdraw the 3m if you wanted to. You also can get loans off of the 3m like you would get a mortage on a house.

[Anonymous No.17079255]

He didn't technically "spend" anything. Securities are a store of value if unsystematic risk is diversified away

[Anonymous No.17079276]

>This entire thread.

[Anonymous No.17079418]

Best thread on biz currently

[Anonymous No.17079435]

>>17078046
Oh loo, this is not how it works sweety.

Inflation will make his 4M nothing no matter what.

[Anonymous No.17079469]

>>17079168
If I gave you $3 million what would you do with it?

[Anonymous No.17079482]

>>17079469
2 girls at the same time

[Anonymous No.17079508]

>>17078021
So he's getting less than 3% annual return on his money? Sounds like a shitty investment

[Anonymous No.17079533]

>>17078021
>muh stocks only go up
nikkeirekt

[Anonymous No.17079572]

>>17079533
>comparing foreign stocks to America, where business puts the shareholder first by law

[Anonymous No.17079588]

>>17079469
$1m in a fund for 7% roi, $2m in LINK

[Anonymous No.17079864]

>>17079588
Based retard

[Anonymous No.17079955]

>>17078919
Holy shit. This is retardism. I mean... how are you even able to locate this website being that dumb? I'm kind of thunderstruck right now. Also this dude probably has retards handling his money. He should pretty easily get 10% roi per year.

[Anonymous No.17079987]

>>17078021
>until he makes that money back
Back from what? It’s literally still his, he still has the money, it’s just not liquid, but it is his.

When you say “makes that money back,” it implies he lost it or something and he needs to recuperate his loss

[Anonymous No.17079998]

>>17079955
Yeah but did you consider that if he puts the $3m into a shitcoin worth $0.002 he will make a way bigger profit when it blows up. Simpletons like him spend $3 mil to get $8k/month while enlightened intellectuals on /biz/ can turn it into millions

[Anonymous No.17080009]

>>17079987
He lost the sky high limitless profits had he invested it all into shitcoins

[Anonymous No.17080031]

>>17079998
>can turn it into millions
Not definitely. With 3.5m and a frugal lifestyle spending 500k on link wouldn't be the worst investment in the world. I wouldn't risk more than that though.

[Anonymous No.17080037]

It's ok OP, he can sell the stocks back on the 2nd hand stock market
probably make at least 90% of their value
so really he only needs like 4 years to make up the difference, not that long.

[Anonymous No.17080040]

>>17079244
checked. What do women do when they find out you have cash?

[Anonymous No.17080071]

>>17078021
The money is still his, the whole point is to put your money to work producing more funds for you. He could have it in savings making .25% (standard savings APY yes a quarter of a %) he could put it in bonds/certificates which have penalties for early withdrawal netting 3.25-4% or he can receive 6-8% in derivatives from his investments while allowing them to mature and appreciate. Smart money is the money that works for you.

[Anonymous No.17080130]

>>17079244

[Anonymous No.17080160]

>>17078021
He's basically breaking even after factoring in taxes and inflation. The guy you're talking about most likely has an extremely defensive portfolio. Or are you only talking about dividends? You do realize that most stocks are expected to go up over time, right?
With a moderately risky portfolio you have can expect 7-9%/ year on average.

[Anonymous No.17080189]

>>17078213
Probably ETFs, I'd wager. That's about as safe as it gets.

[Anonymous No.17080219]

>>17078021
That's a really low return on investment. He must be all in mutual funds or some shit. Blue Chip dividend do better than that. I respect the desire to maintain wealth but that's a little cowardly. I made 8.5 % in 2018 on my fairly conservative portfolio but 2018 was a good year for most people.

[Anonymous No.17080226]

>>17080160
And 8% of $3.5MM is $280k. If you reinvest 2% to cover inflation that leaves you with about $200k pre tax on average. That's enough money to live a comfy life for most people. Especially if you have other sources of income.

[Anonymous No.17080274]

>>17080226
Yeah but the problem with that thinking is it's comfy until ther is a downturn. Once your 200k a year becomes 20k a year it can really fuck your life up if you have anything leveraged or really just paying rent at that point. Naturaly you will bounce back but imagine becoming dependent on that 200k and then going through 2008 to 2011.

[Anonymous No.17080363]

>>17080274
If you're paying rent with 3.5m stock portfolio and 200k in passive income, you are dumber than these biztards

[Anonymous No.17080745]

>>17079215
>>17079955
It will take 30 years to earn his original price. You idiot
>>17079469
Fund my business.

[Anonymous No.17080839]

>>17080745
holy shit how fucking retarded are you anon? I hope you are pretending

[Anonymous No.17080881]

>>17080839
no you're being manipulative trying to persuade me that he doesn't have a 3m stock portfolio that only makes 8k a month.

[Anonymous No.17081077]

>>17080881
You're an absolute fucking retard

[Anonymous No.17081093]

>>17081077
will take 30 years to get the money back, you cant persuade a logical person to take this route.

[Anonymous No.17081154]

>>17078444

because it's about that passive income, not making your money back. $8k for the rest of your life means you don't have to work anymore. I can't believe 4chan anons are so retarded.

>Tell me what lasts longer: $3.5m or $8k a month for the rest of your life?

[Anonymous No.17081167]

>>17081154
imagine having 8k a month...
Being poor is suffering...

[Anonymous No.17081183]

Is anyone actually serious in this thread or are you all just baiting each other?

[Anonymous No.17081191]

>>17081093

[Anonymous No.17081201]

>>17078248
I am a cryptonigger though.

[Anonymous No.17081202]

>>17081183

[Anonymous No.17081224]

>>17079080
>>17079023
>>17078972
>>17078919
>>17078788
Please be fucking trolling.

[Anonymous No.17081328]

>>17081093
He never lost his money to begin with you fucking retard. Saying "get his money back" is implying that he payed money to get that $8k. He's still got the $3mil,96k a year coming in at passive income all while the money is increasing at 3-7%

[Anonymous No.17081417]

>>17080745

[Anonymous No.17081482]

>>17079244
>2020 standards
Try any standard

[Anonymous No.17081579]

>>17078021
>only $8k in passive income

[Anonymous No.17081622]

Some stupid anons in this thread.

He didn’t lose any $ because he BOUGHT stock. He now owns X amount of shares.
These shares create a monthly income revenue for the stock holders to be disbursed among the holders.

He didn’t lose a fucking thing.
And he can sell his shares into a very liquid market without crashing the price.

Nothing wrong with a monthly dividend.

[Anonymous No.17081666]

>>17081154
30 YEARS till you make it back...So i'll be in my 50s. No thank you!

[Anonymous No.17081678]

>>17081224
>>17081328
How does he have the 3mil? It's in stock, which he can't spend unless he withdraws it, which defeats the point of putting it in. Why are you two being retarded?

>>17081622
He lost 3m in stocks. He can't use that 3m.

[Anonymous No.17081711]

>>17079023

A few things to consider, at least here in Europe
>your wealth is taxed 1.2% regardless of your actual interest garnered
>income tax is 50%
>dividends is considered interest so only 1.2% taxes on it
>so you want/must supplement your income with interest if you want to a) not lose money and b) not live in poverty due to it not mattering how hard you work

Crypto goes down? Fuck you, pay me - the tax levy

[Anonymous No.17081735]

>>17079211

That's cute but everyone and their mother knows the current stock market runs solely on Central Banks printing money and buying stocks to prevent the pension funds from crashing, which would collapse the housing market by popping the debt bubble as every old person would have to sell their home to survive.

Look at the public statements of the ECB for example, they aren't even hiding this.

[Anonymous No.17081799]

>>17081678
Are you dumb? Stock money is so liquid that he can sell that stuff in a matter of minutes. If you deposit $3 million into a bank do you "lose" that money you retarded 3rd worlder?

[Anonymous No.17081876]

>>17081799
But selling it would defeat the purpose of investing it in order to gain passive income. Think.

[Anonymous No.17081962]

>>17081876
He doesn't need to sell it. It's making him easy money. $8k is enough to live and if he wants to make any big purchases he can pull some of the money out. If he wants to buy a new Tesla he can just sell some of it after waiting for a year and he'll still have more than $3 mil.

[Anonymous No.17082051]

>>17079435
True, the question is how do you beat inflation?

[Anonymous No.17082080]

>>17078021

I'm laughing my ass off at how retarded you are OP

[Anonymous No.17082085]

>>17078213
>2-3% annual returns
>returns at the rate of inflation
the absolute STATE of stocklets
pic related, a woman sitting on my stack of stinky pinkies

[Anonymous No.17082114]

>>17082085
>returns at the rate of inflation

Right so then you could see it as wealth preservation, if not incredibly profitable

[Anonymous No.17082164]

>>17081678
>when you deposit money into a bank, it’s gone, you lost it, You no longer have it anymore since you would have to withdraw it and that’s just not possible

[Anonymous No.17082218]

>>17081962
He traded 3m to get 8k a month which will take him 30 years. You made me repeat myself even though you are wrong every time. If he sells the stocks he will no longer have the passive income.

[Anonymous No.17082226]

>>17082164
stocks aren't a bank because they aren't there if you withdraw it fool

[Anonymous No.17082349]

>>17082226
>your money isn’t in stocks if you withdraw it from the market
Kind of like how your money isn’t in the bank if you withdraw it from the bank?

[Anonymous No.17082373]

>>17082349
Yes, but you're defeating the purpose of investing in stocks -- which would be to gain passive income, but because it is only 8k and will take 3 decades to reach 3m. I see no reason to invest in it.

[Anonymous No.17082414]

>>17082373
>because it is only 8k and will take 3 decades to reach 3m. I see no reason to invest in it.
If you don’t get a 100% ROI within a year, you may as well just keep it under your mattress, at least you won’t “lose it” :^)

[Anonymous No.17082415]

>>17082373
This has to be a fucking troll. If it isn't then this thread needs to replace the pic related meme

[Anonymous No.17082682]

>>17082415
>>17082414
You spend 3m to make 8k a month. You trolled yourself brah.

[Anonymous No.17082757]

>>17078021
2.7% yield is pretty low desu. But ultimately it's how he got that 3.5 mil. And yeah, that's some comfy passive income for life with the option to draw down whenever needed.

[Anonymous No.17082798]

>>17082373
Dude, these guys are being a little harsh, but they are right. The stock market is extremely liquid, you can "withdraw" that 3MM at any time.

[Anonymous No.17082799]

>>17078776
He can cash in his stocks whenever he wants. How do you not understand this.

[Anonymous No.17082806]

>>17078972
And your father should have invested in condoms. Holy shit this board

[Anonymous No.17082857]

>>17081093
It will take 30 years to DOUBLE his money, not "make his money back".

[Anonymous No.17082913]

>>17082682
Holy fuck you're stupid are you homeschooled?

[Anonymous No.17082923]

>>17078021
OP is pic related

[Anonymous No.17082948]

>>17082798
>>17082799
>>17082806
>>17082857
>>17082913
He could've spent 3m on business. Instead he spends it to make 8k a month. He can withdraw it but that defeats the point of investing and it means that im right.

[Anonymous No.17082977]

>>17082682
You're thinking about it like it's some scam where you hand over money, you're immediately at a financial loss and it will take years to just break even. This would be the case if shares weren't tradable and JUST provided dividend income.

The actual situation is more like you're renting a literal money printing machine. You can return this machine to the store for a full refund whenever you want, and you get to keep all the money you printed. How is that not a great deal?

[Anonymous No.17082997]

>>17082948
So now your argument is that its opportunity cost? Sinking 3mil into a business is risky. Apparently this dude prefers the passive income - and how do you know he isnt ALSO running a business?

[Anonymous No.17083006]

>>17082948
>He could've spent 3m on business
buying shares = investing in businesses you low IQ troll.

[Anonymous No.17083013]

>>17082977
Can you give me 3m and I'll give you 8k per month? Let's be real here. It is a scam. You scam yourself. Sure you can get it back but the whole point in investing is to make money. He could spend that 3m elsewhere.
>>17082997
Risky? Really? You have to be retarded to waste 3m.

[Anonymous No.17083057]

>>17078776
>doesn't know that net wealth isn't liquid assets
I bet you think Jeff Bezos literally has hundreds of billions of dollars in his bank account.

[Anonymous No.17083192]

Look, what else is he gonna do with 3 mil? Buy a fucking lambo? Buy a fucking mansion? Buy fucking drugs and prostitutes?
All of these things will immediately decrease his assets because second hand shit is always cheaper than when it was brand new.
So why doesn't he just invest safely and increase his wealth by 8k every fucking month by sitting on his 3mil?
You would've sent those 3mil down the drain anyway if you spent it so why wouldn't you just earn 8k for not using it?
If you spent 3mil instead of investing you'd be left with some expensive shit that costs way less than you bought it for and drains more money to maintain. You wouldn't be able to spend any more money after your initial spending spree.
If you invest like a sane person you don't have any of the expensive shit but you get 8k passive every month to spend or reinvest for more passive income on top of normal income. You also own 3mil of stocks which you can liquidate when shit gets rough so you can pay for just about anything.

[Anonymous No.17083198]

>>17083013
You are fucking retarded. I want to strangle you to death in minecraft you trolling faggot. No one should give this homo any good info whatsoever after the retardism on display itt.

[Anonymous No.17083305]

>>17083198
But it's retarded to spend 3M in.. *BONK*... it would take.. *BONK* 20.. years to.. *BONK BONK BONK BONK*
https://www.youtube.com/watch?v=x3zT7KRc7w0

[Anonymous No.17083318]

>>17078870
enjoy obsessing over something that you won't fully enjoy the fruits of ever.

[Anonymous No.17083426]

>>17083013
He could spend the $3m elsewhere, but what would that get him? More 40 hour work weeks building another business? Dealing with cunt employees wanting something for nothing?

Maybe buy property? Again you have to invest time to maintain them, its harder to liquidate and once more he must deal with cunty other people

My guess is this guy worked his ass off for years, created a decent business and sold for 3.5m. He invested that money and now probably earns a similar wage to what he had before but without the fucking headache of dealing with idiots.

You literally have no idea what your talking about, hes not interested in doubling his money, hes probably happy just getting 8k FREE every month and not having a single fucking thing to worry about.

[Anonymous No.17083459]

What the hell kinda lifestyle are you leading where an extra 8k a month isn't something you can comfortably live on? And if shit really hit the fan you can always sell those bags and recoup.

[Anonymous No.17083464]

>>17082682
>putting money into an account means you are “spending” it
Your responses are getting less inventive, this one has convinced me you’re just trolling and have run out of things to respond with

[Anonymous No.17083747]

>>17083459
Living it up 'in the club', douche bags spending money on drinks for other douche bags to act like even bigger douche bags because they are best mates with king douche baggatron with all his money.

[Anonymous No.17083776]

>>17078021
no
means it's gonna grow and grow
and when he finally decides to stop riding off it and it's sizeable enough, he can divest and pull it all out
but no one, save cancer patients, would ever do some stupid shit like that

[Anonymous No.17083802]

>>17083747
it's the person, not the money
I hope he gets usurped if you're telling the truth, anon.

[Anonymous No.17084500]

>>17083192
>>17083198
>>17083426
>>17083464
start a business

[Anonymous No.17084804]

>>17078021
Just think of it as interest... Absurdly high interests. He could sell those stocks whenever he wanted.