How To Make REAL Money

[Tugg Speedman]

In 2012 St. Francis High School in Mountain View CA (Silicon Valley) invested $15,000 in SnapChat in the seed round of financing.  That gave them 2.1 million class A shares.  (the School has Barry Eggers and a trustee who directed this investment.  He is the founder of the silicon valley venture firm Light Speed.)

The school sold two-thirds of their holdings on the open yesterday for $24 million.  The schools remaining one-third is now worth $16 million based on last sale (Snap is up another 10% today).

[brandx]

In 2012 St. Francis High School in Mountain View CA (Silicon Valley) invested $15,000 in SnapChat in the seed round of financing.  That gave them 2.1 million class A shares.  (the School has Barry Eggers and a trustee who directed this investment.  He is the founder of the silicon valley venture firm Light Speed.)

The school sold two-thirds of their holdings on the open yesterday for $24 million.  The schools remaining one-third is now worth $16 million based on last sale (Snap is up another 10% today).

Original investors in businesses that take off can make lots of money?

Thanks a lot for this great nugget of information.

[Eldon]

How to make real money?  That's easy...adjust for inflation.

Ba-Doom Tsshhhhh

[Tugg Speedman]

Original investors in businesses that take off can make lots of money?

Thanks a lot for this great nugget of information.

Yes they can make a lot

But turning $15,000 into $41 million in less than 5-years has to be some kind of world record.

This works out to doubling your money 13 times over in 5 years, or about 2.4 doubles per year.

2734% total return of a compounded annualized return is 486%.

[jficke13]

How to make real money?  That's easy...adjust for inflation.

Ba-Doom Tsshhhhh

I approve of this analysis.

[brandx]

Yes they can make a lot

But turning $15,000 into $41 million in less than 5-years has to be some kind of world record.

This works out to doubling your money 13 times over in 5 years, or about 2.4 doubles per year.

2734% total return of a compounded annualized return is 486%.

Apple? The stock debuted at $28.75 per share. Adjusted for splits and dividends, the stock is currently up approximately 1,980% since then.

Warren Buffet? Berkshire Hathaway, started at $290 per share. Buffet worked his magic over the years, and BRK.A now trades somewhere in the range of $190,000 per share. Buying at the IPO would have returned you 65,400%.

[MU82]

Few people have the insight and guts to invest in a company such as Snap. For those who did, I salute them.

Another pretty easy way to turn a little money into big money would have been buying a boring, old, blue-chip "sin" company like Philip Morris in the 70s or 80s or even 90s. It has gone up ridiculously and also has spawned Kraft, Mondelez, Philip Morris International, etc. I bought a little MO way back when and am glad; I bought most of mine just a few years ago and it has more than doubled. One of the greatest stocks ever.

It wouldn't have been major, major money, but certainly any Tom, Dick or Smuggles could have done very nicely investing in AAPL when it was in the low-90s just a few months back ... instead of starting an MUScoop post warning against investing in the company.

Tom and Dick probably did invest, and they are smiling today with the stock at an all-time high.

Smuggles didn't ... and to this day insists he was "right."

[Tugg Speedman]

Few people have the insight and guts to invest in a company such as Snap. For those who did, I salute them.

Actually you're wrong on this.  Lots of people get money in the valley.  No one knows what will be a hot and what will fail so they throw money at everything.  They throw money at you walking down the street.

Roger McNamee openly brags that 95% of his investments in the valley go to zero, but a few earlier round investments in paypal and facebook and he is a zillionaire.  (McNamee says people always ask him what to invest in and he openly tells them, then tells them their is a 95% chance it goes to zero.)

Chris Sacca, lower case capital is another tech investing guru in the valley.  The guy has one of the best track records around.

Yesterday he admitted Murphy and Spiegel were begging him for money in 2012,

http://www.news.com.au/technology/online/social/silicon-valley-venture-capitalist-chris-sacca-regrets-not-investing-in-snapchat-after-company-goes-public/news-story/0d8cea08eefb220a047059fa6ca60e73

He passed because he thought that snap was stupid as its main purpose is to send dick pixs and could not see any real application beyond that.

So how does one become a rich silicon investor?  Through money at 100 ideas.  95 will go to zero.  Of the five left, 4 will struggle along to breakeven.  Hopefully the one that is left will be a facebook or snap.

[MU82]

Actually you're wrong on this.  Lots of people get money in the valley.

As a percentage of the overall population, very, very, very, very few people invest the way you discussed in the opening post. That's why there aren't a bazillion bazillionaires.

As a percentage of the overall population, a whole lot of people look at AAPL at 92 and invest a decent chunk of change in it and smile when it gets up to 140 fairly quickly ... despite smug folks who were sure the company was toast.

[Tugg Speedman]

As a percentage of the overall population, very, very, very, very few people invest the way you discussed in the opening post. That's why there aren't a bazillion bazillionaires.

As a percentage of the overall population, a whole lot of people look at AAPL at 92 and invest a decent chunk of change in it and smile when it gets up to 140 fairly quickly ... despite smug folks who were sure the company was toast.

Whole lot of people bought apple at 92?  And not only did they buy it, they invested a decent chunk of change at $92????

So you've gone from an uninterested by-stander with no position, to a small position and now to a decent chunk of change.  Seems the higher Apple goes the larger and more aggressive you were st $92.

You sound like Chicos that only buys the low of everything and should have enough money to name buildings after him (both at IU and MU). 

[MU82]

Whole lot of people bought apple at 92?  And not only did they buy it, they invested a decent chunk of change at $92????

So you've gone from an uninterested by-stander with no position, to a small position and now to a decent chunk of change.  Seems the higher Apple goes the larger and more aggressive you were st $92.

You sound like Chicos that only buys the low of everything and should have enough money to name buildings after him (both at IU and MU).

Please show where I said I bought Apple then? I bought mine at a little over 100, and I did not buy all that much then. I simply have held since, reinvesting my divvies along the way.

Now please explain how me not buying at 92 means a whole lot of others did not spend a decent chunk of change on it there. Buying volume on AAPL is millions per day ... yes, even when neither of us is buying. But you knew that already. You would just rather argue for the sake of arguing and, whenever necessary, shift those goalposts. Anything but admit you're wrong.

I know it's a difficult concept for you, Smuggles, but ...

#actualfacts

[ZiggysFryBoy]

I made my Ca$h in cattle futures.

[forgetful]

nm

[rocket surgeon]

I made my Ca$h in cattle futures.

priceless!!!  LOLOLOL