Comments on: Getting Out The Climbing Gear

By: Josh

Josh — Fri, 21 Nov 2008 17:50:22 +0000

Hi Diane, I actually got the drop shipping business idea from T4HWW. Timothy mentions two other business idea’s that he prefers, both of which involve information property, which I would like to be involved in soon, but I wanted to start something right away, which is why i defaulted to the drop shipping.
I’ve also read the E-Myth, great book. I do need to start utilizing virtual assistants to supercharge my productivity.
Thanks Diane

By: Diane

Diane — Fri, 21 Nov 2008 14:17:58 +0000

@Josh – sounds like a good plan, but regarding real estate (which I also was backing away from as “way more” than I wanted to get involved in (complicated, etc.), I think the way you approached the stock market is the same way to approach real estate: Read a lot, make a few forays, expect mistakes and growth, persevere and learn how to do better.

I would guess you are using this approach for your drop-and-ship business. How did you know that was the right business investment for you? The books Adrian’s recommended in RE investing stress that it is also a business. How quickly could you liquidate the drop-and-ship business?

If you haven’t yet read another book he’s recommended (E-myth Revisited or E-myth for contractors, talking about entrepreneurs, not on-line “myths”), that would go a long way to helping you avoid what Adrian and Tim Ferris (4-hour work week) say about killing themselves working their own business.

Sounds like you are well on your way!!

By: AJC

AJC — Fri, 21 Nov 2008 03:20:27 +0000

@ Josh – My first experience was with market timing in Aus:

I was working for a Big Computer Company and happened to be in the elevator with a couple of the old ‘dead wood’ guys who still worked there because nobody else would have them. One said to the other: “now’s a great time to buy stocks … the market’s really going up”.

I had no real experience with stocks at that time, but I instinctively knew: if they’re talking about getting in, it’s time to get out!

Surely enough, within just a couple of weeks it was the Crash of ’87 …

@ Debbie – … so, if everyone who does NOT know what they are doing is talking ‘doom and gloom’, you know what to do! But, you need to be a little bit patient (it could a while to get the returns) and, it’s probably best to ‘stage’ your purchases so that you are buying 25% now and 25% in 3 months and so on.

By: Josh

Josh — Fri, 21 Nov 2008 02:52:24 +0000

Debbie, that’s I great question and I’m so happy you asked it.
There are so many amazing companies that are on sale right now, as in today 20 Nov, 2008. It’s actually incomprehensible how cheap so many great companies are, the prices are actually ridiculous. And this is probably 10% + less then what Warren Buffet has paid for these same companies. I don’t know exactly where the bottom is, but I do know these are great prices and I’m excited to have money to buy.
I was eighteen when I bought my first shares, lost a bunch of money cause I had absolutely no idea what I was doing (reference quote from Buffet “Risk comes from not knowing what you’re doing.”). So I read a few books, formulated a few theories of my own, read a little more, did a little more trading; basically after a few good trades your confidence grows.

I’m not worried but excited because the potential to make extraordinary profits in well known, perfectly stable, low risk companies is here right now.

By: Debbie

Debbie — Fri, 21 Nov 2008 01:20:20 +0000

How old were you when you first tried out the stock market? Just curious…

So, everyone around me is talking about the economy and how they’re losing money left and right in the “market” or their 401k plans, or whatever other investments they have – and here you are talking about making the stock market your primary gear to climb your mountain. Does that worry you at all?