Feb 092017
 

I recently watched an HBO documentary called “Becoming Warren Buffett,” which features the life of the man himself. The show gives viewers an extensive look at Buffett’s achievements, struggles, and challenges with his career, and probably more importantly, with his personal relationships.

Buffett started making money at a young age selling gum door to door, and delivering newspapers. He began trading stocks in his early teens and started college when he was only 16 years old. Today everyone knows him as the investment guru who is currently worth about US $72 billion, which makes him the second richest person in the world, right behind his close friend, William. 🙂

becoming warren buffett review

The documentary covers his family background and personal relationships. It felt like I was watching an honest biography about Warren. For the first time ever I got an inside look at the day to day events and lifestyle choices of Warren Buffett. It has been a real eye opener! For example on his way to work in the morning, he often stops by a McDonald’s and orders a Sausage McMuffin.

Doh! :/ No wonder I’m not rich yet. This whole time I’ve been ordering the Bacon ‘N Egg Bagel like a peasant. If only I had known his secret earlier. 😛 Below are some other important lessons I learned from watching “Becoming Warren Buffett.”

  • Live close to work. It takes Warren only 5 minutes to drive to his office everyday. And he’s been taking the same route for 54 years! Not wasting much time on commuting is why he gets so much done.
  • Be smart. Warren admits that he’s wired in a way that gives him an advantage over others when it comes to understanding businesses. He was always good with numbers starting at a young age and learning about the financial markets comes easily to him. Unfortunately for some, intelligence is largely genetic.
  • Read a lot. Every day Warren goes to work and reads books, newspapers, financial reports, or various other material for 5 to 6 hours.
  • Have role models in your life. In the documentary Warren said, “the best gift I was ever given was to have the father that I had when I was born.
  • Develop your own inner scorecard. Don’t let other people’s standards and expectations define who you are or what makes you succeed or fail.
  • Learn from people you trust. Business partner Charlie Munger helped Warren realize that in order to build immense fortune, it’s better to look for great businesses at reasonable prices rather than okay businesses at cheap prices.
  • Develop focus. Warren believes this is the most important quality to have if you want to be successful.
  • Have patience. The biggest factor to making money is time. Warren says you don’t have to be smart to become wealthy. You just have to be patient. 🙂

If we keep in mind these simple guidelines from Warren then I’m sure his wisdom will have an impact on our lives. Depending on different sources, Warren appears to have either an ISTJ or INTJ personality type. This mean he is a rational planner who likes to keep to himself most of the time. As an INTJ myself I understand what it’s like to live inside one’s own head sometimes. It’s probably why I can relate to his investment philosophy. 🙂

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Random Useless Fact:

Aug 282013
 

What is Stealth Wealth?

Stealth wealth is defined by being rich but not letting the world know about it. This financial strategy is how most millionaires are able to blend into society. Keeping our wealth a secret allows us to enjoy work, travel, play, and financial security without attracting unwanted attention to ourselves. So stealth wealth, is good wealth 😎

Obtaining financial security for ourselves without everyone else knowing about it can save us lot of stress and problems that sometimes comes with wealth. So the lesson today is don’t tell anyone if you win the lottery or become a millionaire 😉 This is one of the reasons I blog anonymously. None of my co-workers know the size of my stock portfolio, or how much I’m invested in precious metals. If they did, they would probably ask me for investment advice, which I’m not professionally authorized to give. Unrealistic high expectations often lead to disappointment which would be detrimental to my relationships. 😕

For example, I can give them sound, generic advice like pay yourself first, and don’t put all your eggs into one basket. But they’ll think I’m a snob who doesn’t want to share my “real secrets.” I could give them specific advice like to buy real estate, or Disney stocks and Starbucks stocks because I’m invested in these companies myself and have seen some great returns so far. But if the market goes down then they’re going to blame me for losing their money. Nothing good usually comes about when people find out you have money.

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Yes, it can be difficult for some people to restrict the urge to tell their friends and family when they come into a great deal of money. But one question everyone should ask themselves before posting their financial situation on Facebook is “Do I really want the extra attention that this will get me?” If the answer is no, then it’s probably better to keep quiet about the money. 😕

I recently read about Bloomberg’s uncovering of wealthy people in the US who are not very well known. One of these people is a billionaire who works in the food business. This person is my new role model. He practices being stealthy with his wealth. He doesn’t let his ego or pride get to him and he gives anonymously to charities. 😀 Continue reading »

Aug 042013
 

July was an amazing month for stocks 😀 The S&P 500 index which contains many US stocks I own has climbed higher than 1,700 for the first time evar! My gut feeling tells me the market is fully priced right now so I’m not going to buy any new stocks for the next month and just focus on other ways to build up my wealth.

Speaking of wealth, Forbes has put together a list of the 15 richest personalities from popular movies, novels, television shows and games. Over the last year the combined net worth of the Fictional 15 has climbed 3% to $215.8 billion. Geez, even the fictionally wealthy are getting richer and richer 😛 Scrooge McDuck takes first place with a net worth of $65.4 billion. Tony Stark (Iron Man) has $12.4 billion from his defense contracts and inventions. Bruce Wayne has an estimated $9.2 billion from Wayne Enterprises. Tywin Lannister from Game of Thrones has $1.8 billion, and Lara Croft from Tomb Raider has $1.3 billion from her inheritance and treasure hunting 😀 How many characters do you recognize from Forbes’ Fictional 15? 13_08_fictionalwealth

It’s worth pointing out that Carlos Slim and Bill Gates have net worths of $73 billion and $67 billion respectively so not even the richest characters from fictional wealth can compete with the wealthy celebrities of the real world, lol. What the rich seem to have in common (real life and imagined) is they all have a great story to tell 🙂 Maybe when I’m retired some day I’ll have a nice tale of my own. In July my net worth climbed higher again, mainly thanks to the recent rally in the stock market.

*Side Income:chart_13jun

  • Part-Time Work = $800
  • Dividends = $400

*Discretionary Spending:

  • Eating Out = $100
  • Others = $200

*Net Worth: (MoM)

  • Assets: = $571,500 total (+$1,700)
  • Cash = $5,400 (-$1800)
  • Stocks CDN =$73,600 (+$2600)
  • Stocks US = $40,300 (+$1300)
  • RRSP = $30,400 ($400)
  • Home = $252,000 (same)
  • Farm 1 = $152,500 (same)
  • Farm 2 deposit = $17,300 (same)
  • Liabilities: = $388,400 total (-4,100
  • Mortgage = $202,100 (-$400)
  • Farm 1 Loan = $110,200 (-$300)
  • Margin Loan CDN = $26,100 (Same)
  • Margin Loan US = $22,100 ($300)
  • TD Line of Credit = $10,000  (-$3000)
  • CIBC Line of Credit = $13,000 (same)
  • Credit Card = $4900 (-$100)

*Total Net Worth = $183,100 (+3.2%)
All numbers above are in CAD. Conversion rate used: 1.00 USD = 1.04 CAD

July has treated me like royalty.  I got a small raise at my full-time work, the stock market climbed to record highs, and no unexpected expenses. This perfect recipe led to a net worth gain of $5,800 🙂 Holy mashed potatoes, no idea what I did to deserve this luck. On average I only see $3,500 increase a month, so I certainly don’t expect this recent trend to continue.