前Banker真心話🙅🏻♀️成為有錢人不能靠投資, 不要再浪費時間了🫡[中文ENG]
Summary
TLDRThis video script explores the misconceptions about wealth creation through investment, highlighting that financial freedom is not solely achievable by stock market plays. It emphasizes the importance of initial capital, the reality of market returns, and the significance of building a business. The speaker, a former banker, shares insights on the wealth pyramid, the role of private companies in asset accumulation, and practical steps to financial independence, advocating for a clear 'Why?', exploring 'How?', and challenging viewers to assess their daily actions towards wealth-building.
Takeaways
- 💰 **Wealth Accumulation**: Warren Buffett, George Soros, and Bill Ackman made significant profits through various investment strategies, but these are not typical and require substantial capital to begin with.
- 🏦 **Investment Reality**: The speaker, a former banker, emphasizes that becoming wealthy cannot solely rely on investment and that financial freedom is a gradual process.
- 💼 **Capital Requirement**: Before making substantial investments like in Coca-Cola, Buffett had already achieved financial freedom, highlighting the importance of initial capital.
- 📈 **Stock Market Returns**: High-percentage returns on investments like Tesla or NVIDIA are impressive but may not be enough to retire on, especially with small initial investments.
- 📊 **Market Index Returns**: The S&P 500 has a long-term average return of about 9.9%, which, while stable, is not enough for rapid wealth accumulation.
- 🚀 **High-Risk, High-Reward**: Pursuing ultra-high returns involves high risk, often requiring investment in high-growth startups or exceptional foresight and luck.
- 🤔 **Investment Performance**: Most professional fund managers underperform the market index, indicating that even experts struggle to consistently outperform the market.
- 🏆 **Wealth Origin**: The primary source of wealth for the rich is their private companies, not financial investments, with the bottom 50% of people holding minimal shares.
- 🛠 **Value of Work**: Building a business and solving problems for others through products or services is a key path to wealth, as illustrated by the speaker's own startup journey.
- 🔄 **Wealth Pyramid**: The wealth pyramid shows that the top tier consists of rich tycoons, followed by financially free individuals, and the base being ordinary people with jobs but lacking freedom.
- 💡 **Start With Why**: Understanding the 'why' behind seeking financial freedom is crucial, as it helps to define one's financial goals and the lifestyle one aspires to achieve.
- 📚 **Education and Influence**: Learning about financial management and being influenced by successful individuals can significantly impact one's approach to achieving financial freedom.
- 🔢 **50/30/20 Rule**: A key financial management rule suggests allocating 50% of income for necessities, 30% for savings or debt repayment, and 20% for discretionary spending.
Q & A
What was the return on investment Warren Buffett achieved by investing in Coca-Cola?
-Warren Buffett made more than 1,700% on his investment in Coca-Cola, winning 22.7 billion dollars.
How much did George Soros reportedly make from a single short bet?
-George Soros made 1 billion dollars in one short bet.
What was Bill Ackman's profit from shorting US Treasury bonds over a three-month period?
-Bill Ackman made 200 million dollars by shorting US Treasury bonds in 3 months.
What is the speaker's view on the necessity of capital for investment to achieve wealth?
-The speaker believes that to become rich, one cannot rely solely on investing because you first need to have capital to invest.
What is the speaker's perspective on the common belief that high investment returns can lead to wealth?
-The speaker suggests that even with high investment returns, a small initial capital will not be sufficient to make one wealthy, especially if they cannot afford to retire on such returns.
What is the long-term average rate of return for the S&P 500 index according to the speaker?
-The long-term average rate of return for the S&P 500 index is about 9.9%.
How does the speaker describe the wealth accumulation of the rich through private companies and financial assets?
-The speaker indicates that the largest source of assets for the rich is their private companies, with financial assets as a secondary investment. The bottom 50% of ordinary people hold very little in private companies or financial assets.
What is the speaker's opinion on the effectiveness of large active funds in capturing market trends over the past 15 years?
-The speaker states that 90% of the returns of large active funds have underperformed compared to the S&P 500 market index, indicating that these funds have not been able to outperform the market.
What is the main source of wealth for the rich according to the research mentioned in the script?
-The main source of wealth for the rich is their ownership of private companies, with financial assets as a secondary source of investment.
How does the speaker describe the wealth pyramid and its implications for financial freedom?
-The wealth pyramid has rich tycoons at the top, financially free individuals in the middle, and ordinary people at the bottom with jobs but no freedom. The speaker suggests that achieving financial freedom is not just about investment but also about business and solving problems for others.
What is the speaker's advice on the first step towards financial freedom?
-The speaker advises to start with understanding 'Why?' - the personal motivation and definition of financial freedom, as it varies from person to person and can change over time.
What is the '50, 30, 20 rule' mentioned by the speaker for financial management?
-The '50, 30, 20 rule' suggests allocating 50% of income for necessities, 30% for savings, investment, or debt repayment, and 20% for discretionary spending such as leisure and entertainment.
How does the speaker suggest increasing one's income to achieve financial freedom?
-The speaker suggests identifying and pursuing various ways to increase income, such as side jobs, entrepreneurship, promotions, or learning about investments and asset allocation.
What role does the speaker believe a positive circle of influence plays in achieving financial success?
-The speaker believes that having a positive circle of influence, particularly being associated with wealthy individuals, can increase one's likelihood of participating in investments and savings, thus contributing to financial success.
What is the significance of the book 'Think and Grow Rich' in the speaker's perspective on achieving success?
-The book 'Think and Grow Rich' is highlighted as it emphasizes that a strong desire to succeed is the starting point for many successful people, suggesting that having a burning ambition can be a driving force for achievement.
Outlines
💰 The Illusion of Quick Wealth and Reality of Capital Accumulation
This paragraph discusses the allure of the stock market through the success stories of Warren Buffett, George Soros, and Bill Ackman, but emphasizes that becoming wealthy isn't solely about investing. It clarifies that financial freedom requires initial capital and that even high-percentage returns on small investments won't lead to significant wealth. The speaker, a former banker, highlights the importance of understanding the time value of money and the risks associated with high-return investments. The paragraph also points out that most people are not adept at investing, as evidenced by the underperformance of active funds compared to the S&P 500 index. It concludes by suggesting that the wealth of the rich originates from their private companies rather than financial investments, and that becoming wealthy involves solving real-world problems through entrepreneurship.
💼 Achieving Financial Freedom: The Buffett Way and Personal Strategies
The second paragraph focuses on Warren Buffett's early financial independence and the strategies he used to accumulate wealth. It details Buffett's various money-making ventures from a young age, including newspaper delivery and entrepreneurial ventures, which allowed him to save a significant amount by the time he was 25. The speaker then outlines a three-step approach to financial freedom, starting with understanding one's 'Why' for seeking financial freedom, which is to determine the lifestyle and freedom one desires. The paragraph also touches on the importance of increasing income, reducing expenses, and setting realistic financial goals. It concludes by emphasizing the need for daily actions that align with one's financial aspirations, rather than just setting lofty goals.
📈 Practical Steps Toward Financial Freedom and the Role of Financial Literacy
In the final paragraph, the speaker provides practical advice on increasing income and achieving financial freedom. It introduces the 50/30/20 rule for budgeting, which allocates 50% of income for necessities, 30% for savings or debt repayment, and 20% for discretionary spending. The speaker encourages identifying ways to boost income, such as side jobs or promotions, and stresses the importance of learning and applying financial knowledge. The paragraph also discusses the impact of a positive financial circle, suggesting that associating with wealthy individuals can improve one's financial behavior. It concludes by differentiating between wanting and needing financial freedom and the importance of a strong desire for success, as well as the role of a good business management system like Odoo in improving efficiency and reducing paperwork.
Mindmap
Keywords
💡Investing
💡Financial Freedom
💡Capital
💡Compound Effect
💡Stock Market
💡Private Companies
💡Wealth Pyramid
💡Passive Income
💡Financial Literacy
💡Odoo
💡Entrepreneurship
Highlights
Buffett made more than 1,700% by investing in Coke Company, winning 22.7 billion.
Financial tycoon Soros made 1 billion in one short bet.
Bill Ackman made 200 million by shorting US Treasury bonds in 3 months.
Stock god Buffett had already achieved financial freedom before founding Berkshire Hathaway and buying Coca-Cola shares.
Becoming rich cannot rely on investment alone, as you first need capital to invest.
Even with high annual returns, small capital investments like 10,000 yuan in Tesla or NVIDIA will not be enough to retire on.
The long-term average rate of return for the S&P500 index is about 9.9%, requiring 74 years to turn 10,000 yuan into 10 million Hong Kong dollars.
Pursuing ultra-high returns means bearing ultra-high risks, such as investing in high-growth start-ups.
The success probability of high-return companies is very difficult to predict in the long term.
Peter Lynch's long-term annual return is 29%, while Buffett's is 20%, both highly respected.
90% of large active funds have underperformed the S&P 500 market index over the past 15 years.
The largest source of assets for the rich is their private companies, with only 1% of the bottom 50% of ordinary people holding shares in private companies or financial assets.
To become the richest, one must rely on using their products or services and solving problems for others through business.
Odoo is a Belgian business management platform that integrates company business processes, helping small and medium-sized enterprises manage operations and data efficiently.
Becoming the top 1% depends on business success, which is not easy, but Buffett achieved financial freedom before owning Berkshire Hathaway.
Buffett had saved $120,000 by age 25, which he believed was enough to invest and live off the income, illustrating how to achieve financial freedom at a young age.
The first step to financial freedom is understanding why you want it and what it will cost, as everyone's motivation and price tag for freedom differ.
Increasing income, reducing expenses, and lowering the price tag of financial freedom are key strategies for achieving it, beyond just saving.
The 50/30/20 rule for financial management suggests allocating income to necessities, wants, and savings/debt repayment.
Finding ways to increase income, such as side jobs or promotions, and learning about investing and asset allocation, is crucial for financial growth.
Establishing a positive circle of influence with rich friends and mentors can improve one's financial knowledge and success.
Financial freedom requires a strong desire for success and learning from adversity, as many rich people are self-made.
Transcripts
Buffett made more than 1,700% by investing in Coke Company, winning 22.7 billion.
Financial tycoon Soros made 1 billion in one short bet.
Bill Ackman made 200 million by shorting US Treasury bonds in 3 months
! Watching so many people make big money , how can someone be tempted not to enter the market and play with both hands?
But as a former banker who has been in the U.S. stock and bond markets for 10 years, I
can tell you frankly that to be rich, you cannot actually rely on investing
. The fact is that stock god Buffett
had already achieved financial freedom before he founded Berkshire Hathaway and bought Coca-Cola shares.
Becoming a rich man cannot rely on investment, because first you need to have capital to invest. Even
if you buy Tesla, NVIDIA, with their highest annual return,
if you invest 10,000 yuan, Tesla will increase by 700% in a year, and NVIDIA will increase by 300% in a year.
Haha, talking about percentages, of course it is very impressive,
but if you have a small capital, it will not be enough to make money. Let you retire.
If you buy the S&P500 index of the US stock market, the long-term average rate of return is about 9.9%.
That means if you invest 10,000 yuan, calculating the 9.9% rate of return every year
means that it will take you about 74 years. If you save 10 million Hong Kong dollars
, that is to say, even if you start investing at the age of 15, you
will have to wait until the age of 89 to become a multimillionaire.
Of course, if you say you only have 10 years to retire, you
will have to wait until you are 89. 10,000 yuan turns into 10 million, and the annual return rate needs to be 100%.
If you want to pursue an ultra-high rate of return
, it means that you have to bear an ultra-high risk.
For a company with an annual return of 100%, you may have to Invest in some high-growth start-up companies
or you have an excellent vision and a good fortune. But
what is the probability of success for this type of company?
It is usually very difficult to predict, and basically no one can predict
it all the time in the long term. Even if you find a stock that continues to rise,
you are a legendary investor. Peter Lynch's long-term annual return is 29%.
Buffett, the stock god, has
a return rate of 20%. The whole world has stood up, bowed and clapped.
In addition, realistically To put it bluntly, people are actually very bad at investing.
In the past 15 years, 90% of the returns of large active funds that try to capture market trends
have underperformed
the so-called most professional fund managers such as the S&P 500 market index. , have done so many analyzes and reports
, but the returns cannot outperform the market index.
Then you may ask, where does the wealth of the rich come from if it is not investment?
Research points out that the largest source of assets for the rich , that is, their private companies
invest secondarily in financial assets
. Among the bottom 50% of ordinary people , only 1%
of the bottom 50% of ordinary people hold shares in private companies
or financial assets. People's investment ratio is also very small
, and this ratio will increase as their wealth increases .
The proportion invested in private companies and financial assets will also increase
. To become the richest person, you still have to rely on using their products or services.
To help solve the problems encountered by other people in the world
is simply to do business.
My RainIsHere channel is also a start-up.
As the owner of RainIsHere start-up,
in addition to making videos, I usually have to take care of all the big and small things in the company.
Project Manager,
Accountant,
Marketing,
Video Producer
, and Cleaning Aunt
, I wear so many roles, it really takes up a lot of my time.
Thank you Odoo for sponsoring today’s video.
Odoo is a business management platform based in Belgium.
They have their own platform. The development of more than 70 applications
can integrate the entire company's business processes in one go.
It helps small and medium-sized
enterprises such as us. The daily operational processes and data are all on the same platform,
making it easier to manage.
We don't have to worry about things being scattered around. We need to use a lot. I have just finished cleaning up my time
, so now I will save time to focus on making better quality videos.
Although there are many different applications on the platform, it
is very simple to use.
Each business function has a corresponding application to manage
it. Just install it according to your company's needs
. Of course, if you start a business 10 times, you will fail 9 times.
The 10th successful start-up company
may have failed 9 times before.
Becoming the top 1%
depends on business, but it is not easy.
However, the stock god Buffett
had already achieved financial freedom long
before he owned Berkshire Hathaway and his business before buying Coca-Cola shares.
This is the wealth pyramid.
The top of the wealth pyramid is rich tycoons
, then the financially free people,
and the bottom is the needs
of ordinary people. There is a job but no freedom.
Many novice investors are trying
to learn from stock gods and giants like Buffett,
hoping to become rich like them.
Of course, it is definitely valuable to absorb their investment principles
, but I think it is more important. The important thing is to understand how he started.
If you are 12 years old this year and want to play football,
of course you have to look at what Messi was doing when he was 12 years old
, not what his life is like now that he has become famous, right? ?
Buffett already had $9,800 in savings
after he graduated from college.
By the time he was 25, he had saved $120,000.
Adjusting for inflation, that is equal to 1.4 million today.
He believed that he only needed to invest $120,000 in his capital every year.
The income generated from it is 12,000 yuan
, which is enough for him and his wife to live.
He also told his wife
that this compound effect will ensure that we will become rich.
Buffett, who is in his 20s, has achieved financial freedom at a young age.
How is his money? How can I get it?
Buffett did not have the capital to invest
in Coke Company shares at the beginning
. On the contrary, he worked hard to earn back the money.
He delivered newspapers when he was a student
and started a business in high school
, including renting out some ammunition. Earn passive income from bead game consoles
. He would pick up some second-hand balls at the golf course,
clean them and sell them to golfers
. He also opened a car washing company
. After graduating from college, he worked as a securities analyst at Graham Newman.
The 25-year-old is definitely not a rich man
, but his story clearly tells us
how ordinary people can achieve financial freedom
. Therefore, the first goal of ordinary people should be
to achieve financial freedom like Buffett did when he was young,
which is to increase his own capital. Earn your first pot of gold
here. I want everyone to do us a favor
and subscribe to our channel.
Right now, only about 40% of our viewers have subscribed.
I hope this number can rise to 50%.
One of your subscriptions can definitely help RainIsHere go further.
Thank you for helping
more people.
Today I will show you
how to achieve financial freedom in three steps
. The first one is Start With Why.
Many people don’t know how much money is enough to buy their freedom.
I might casually say 10 million. , 50 million is enough, right?
I remember that when I was in my 20s,
the price tag I bought for my freedom was not very expensive,
because at that time I simply thought
that the freedom I wanted most was to be able to choose to work whenever I wanted.
You can do things with whomever you want
, but you don’t have to do nothing
, so my free price tag at that time was about 10,000 Hong Kong dollars per month.
As we age, many people’s burdens will increase,
so after some people are over 30 years old, the price tag may has risen sharply
, so we need to first know why I want this kind of financial freedom.
Without a clear goal
, it is difficult to plan what we will do next.
Everyone’s motivation for freedom is different.
Some people want to live in a big house
, and some people may want to live in a big house. Just say, no, do I want to travel around the country luxuriously
or do you want to be healthy
or have a lot of free time?
The things you think about when you are 20 and when you are 40 may be different.
If you just want To live a simple life,
you may only need 1 million
to move to Southeast Asia and
you will have freedom.
But if you want some very luxurious life
, you may need 50 million to be free,
so this financial freedom is not a rigid number.
There is no specific price tag
. Of course, if you are completely satisfied with your current life
and the job you are doing
You don’t need to choose financial freedom,
but at any stage of your life
you may face health problems
, economic deterioration, unemployment, etc.,
and you will suddenly want financial freedom again,
so you want to Things may change with your age
. The second step is
How?
If you are 35 years old
, even if you have an annual salary of 750,000
plus expenses and
can save 200,000 every year,
it will take 50 years to save 10 million.
Therefore, it is basically impossible for
ordinary people to achieve the goal of early financial freedom by relying on monthly savings alone
. Since a job cannot make you financially free,
what you can do are four things.
First, increase your income.
Second, reduce expenses.
Third . , significantly lower the price tag of your financial freedom
, or even give up financial freedom.
If you are not planning to give up financial freedom, if
you choose one, two, or three,
there are actually a lot of things for us to continue to do.
What is our next step
?
Of course . Of course I have experienced it myself,
whether it’s when I get up,
when I’m working,
when I’m taking a break, when
I’m in the car, when I
go to the toilet, when
I’m aimlessly scrolling on the phone
, in short,
isn’t it just those pages that I keep refreshing?
But my fingers seem to be addicted and
know it. It’s a waste of time.
It’s still like this every day
. But when you look back
, many people say that they don’t have time to read.
Ask yourself
, apart from your regular job,
what do you do
when you are off
work
? Do most people say
to travel
and make appointments ? When your friends
are shopping
and eating,
check the phone and see
how many people will actually read books or courses on financial freedom,
financial management, entrepreneurial investment, etc. in the 30 minutes of free time on
the phone
? Then look at your expenses to see
if you haven’t done it yet. Rich people
are already doing it.
What about buying things that only rich people will buy?
Goals like 10 million or 50 million
in themselves will not change your life.
What can change your life
is what you do every day.
Simply put,
how much do you spend working hard every day
? The goal that takes the most time
to help you achieve
is to continue doing the work you don’t want to do.
Although you want to be free
, even if you have free time, what you
do is not the way to achieve financial freedom
because you are not using your time to increase your income
or reduce your expenses
. Think about
what you do every day
that will bring you closer to your goal.
Conversely, you can also write down
how much time you waste every day
before doing something that is further away from your goal.
I have made many videos
introducing different methods of passive income
. If you are interested, you can take a look
. So what can we do?
The first rule of financial management
is this 50, 30, 20 rule.
50% of your income should be used for your necessities and
20% should be used for things you want,
including study or The remaining 30% for leisure and entertainment
is used for your savings
investment or to pay off your debt.
So how can you make more money?
You may say
it is not investment?
Buy stocks or buy a house?
Are there any other ways to increase my income ? What about your income?
As a wage earner, you have very little time
and you have to research stocks and real estate.
Or should you just watch YouTube
and get stock numbers online
and win with one bet?
In your limited time,
I would suggest you sit down and think about it. I want to
seriously write down
5 ways you can possibly increase your income.
The advantage of writing down is that
you can basically know immediately
what your shortcomings are
and give yourself some daily tasks that you can do
to make up for these shortcomings
. For example, An extra income is that
I want to do a side job.
If you are good at designing pictures,
you can put some templates of
your designed things on the platform
and sell them to earn extra income.
So your daily task is
to compare different platforms.
Research
, and I have to draw and design for 30 minutes every day.
Another way is
if I want to start a business, your daily task is
to take some entrepreneurial courses
, read some books about marketing,
participate in some industry activities
, get to know people in the industry, etc.
If you are If you want to increase your income
by getting promoted and adding labor
, your daily task is to work harder than others, strive for performance
, learn,
and strengthen your ability and competitiveness to do things.
If you want to invest in stocks
to earn passive income,
then your daily task is If you want to learn about investing,
learn about the market
, understand what asset allocation is, etc.
, or read some investment books, I
already have Rain’s book list
in the information column below
, or you can sign up for our
7 must-know books for Zhuzhu to become a professional investor. Study
for 30 minutes every day
, yes! Earn more , yes! The so-called making more money
is a skill in itself
, which means that you need to learn, practice
and take time
to not make a profit for nothing.
You may turn around and say
Rain again. Some mothers are women's things,
yes! It sounds like a very simple principle
, but the fact is that
many people in the world
are still unable to achieve this financial freedom.
According to S&P research,
two-thirds of people in the world
are actually so-called
Financial illiterate
. Illiterates
tend to have insufficient income, pay
credit cards, etc.
Another thing I think needs to be done
is to establish a positive circle of influence from friends.
This is a study on the impact of rich friends
on ordinary people's finances.
If you know 10% more of these rich people My friend,
the possibility of you participating in this stock market investment will increase
, and your participation in savings will also increase.
About 1.5% of people in the world
are multi-millionaires.
It is unfair that they own nearly half of the world's wealth
!
You may They say they are unscrupulous
vampires
who have taken over so much wealth in the world
, but the fact is that
80% of these rich people
are actually self-made.
I am not calling you here
! If I want to find a circle of rich people,
I won’t look for the ones before. Friends,
the key point here is
not to hate rich people,
try to get to know them more
and learn their thinking about work and money.
Finding a rich person to be a mentor
is also a good start.
Do you want financial freedom
or do you need financial freedom? What?
They are two different things in themselves
, so I always
thank myself
for coming from a humble background
. Well,
that’s what the saying goes.
Money can't buy a poor boy,
right?
Haha ,
so being in adversity
is actually a big driving force for me.
You don't need a rich dad
to be successful.
Think and Grow Rich
is one of my favorite books. It also
points out that
the way to success begins with
a strong desire to succeed
, which means that many successful people
actually rely on a big fire in their hearts,
but a life that is too comfortable and mediocre
will only make you a mediocre person
. I definitely don’t think financial freedom
is an easy road.
I hope the Why?
How?
and What?
I just gave you
can help you
. I am working very hard to run RainIsHere, and I
often end up very late
in building my own business. Sometimes
you have to kick
everything as if it's none of your business,
so a good business management system
like Odoo
can improve your work efficiency
and reduce the burden of paperwork on your colleagues.
If you are interested,
you can click on the link below.
Use it for free for 15 days
or talk to an Odoo expert directly
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