- \u00bfQu\u00e9 son los \u201cmillonarios de clase media\u201d? \u00bfExisten realmente?<\/li>
- Is it possible to start a business without any capital or investment (startup) and still make it big in life financially speaking?<\/li>
- How low will cryptos go?<\/li><\/ul>\n\n\n\n
Si quieres que responda a alguna pregunta en Quora o YouTube, o est\u00e1s buscando invertir, no dudes en p\u00f3ngase en contacto conmigo<\/a>, correo electr\u00f3nico (advice@adamfayed.com) o utiliza la funci\u00f3n de WhatsApp que aparece a continuaci\u00f3n.<\/p>\n\n\n\n
Es posible que algunos de los enlaces y v\u00eddeos a los que se hace referencia s\u00f3lo est\u00e9n disponibles en las respuestas originales. <\/p>\n\n\n\n
Fuente de todas las respuestas: p\u00e1gina Quora de Adam Fayed.<\/p>\n\n\n\n
\u00bfQu\u00e9 son los \u201cmillonarios de clase media\u201d? \u00bfExisten realmente?<\/h2>\n\n\n\n
They certainly exist.<\/p>\n\n\n\n
There are two primary ways:<\/p>\n\n\n\n
- The get rich slow kind of millionaires<\/strong><\/li><\/ol>\n\n\n\n
These are people who have typically only ever earned an average income, but started investing early, and got rich slowly.<\/p>\n\n\n\n
People like this cleaner who died with $8m:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
Or this secretary who died with a similar amount<\/p>\n\n\n\n
<\/figure>\n\n\n\n
They just held onto assets \u201cforever\u201d. They are income-poor or above, but asset rich, unless they turn their assets into cashflow eventually.<\/p>\n\n\n\n
2. The more controversial idea.<\/strong><\/p>\n\n\n\n
Most people think being rich is about income. If you earn much more than everybody else, you are \u201crich\u201d.<\/p>\n\n\n\n
Many tax systems have the same assumption as well. In the UK, if you earn over 150k Pounds a year (165,000USD at the time of writing) you pay higher taxes, as you are earning 4x or so more than the average person. In the US, it is $523,601.<\/p>\n\n\n\n
Yet just because somebody is earning such amounts, doesn\u2019t mean they are wealthy or have a fundamentally different relationship with assets than the average person – more on that below.<\/p>\n\n\n\n
Even if somebody is a multi-millionaire who is worth $5m, and earns 600k a year, in many ways, that person is very upper-middle \u201cclass\u201d.<\/p>\n\n\n\n
Think about it this way. The gap between somebody earning minimum wage and is in the situation I just mentioned, is smaller than the gap between a billionaire and somebody who is worth $5m, and earning 600k.<\/p>\n\n\n\n
A good rule of thumb is this. If somebody can live off their investments\/assets comfortable, they are upper-middle \u201cclass\u201d.<\/p>\n\n\n\n
That person who has $3m and can draw down 90,000 a year is comfortable, but not rich.<\/p>\n\n\n\n
In comparison, an investor who can live more than comfortably from assets alone, is more likely to have moved beyond the middle-class.<\/p>\n\n\n\n
Either way, to judge somebody on income alone is misleading, as is the word class, which is why I put it in inverted commas.<\/p>\n\n\n\n
The biggest indicator is more likely to be the relationship a person has with assets, rather than income or if they run their own business or have a high income.<\/p>\n\n\n\n
Is it possible to start a business without any capital or investment (startup) and still make it big in life financially speaking?<\/h2>\n\n\n\n
It depends how you define big.<\/p>\n\n\n\n
About 90% of businesses go out of business within five years. Even studies that show otherwise still give a failure rate of 60%-70%:<\/p>\n\n\n\n
<\/figure>\n\n\n\n
Many of the businesses that succeed are just lifestyle businesses.<\/p>\n\n\n\n
Believe it or not, if an owner makes $100,000 a year, they are already well inside the top 5% of business owners.<\/p>\n\n\n\n
$500,000+ is inside the top 2% of business owners in most countries. $700,000-$1m is inside the top 1% in the vast majority of countries.<\/p>\n\n\n\n
Only a very small number of business owners make more than that. Quite a few of those businesses have leveraged other people\u2019s money.<\/p>\n\n\n\n
Some use debt, but plenty do have to use equity. Hence why private equity and angel investing is such a big thing.<\/p>\n\n\n\n
I have seen some business owners make ten of millions per year, or even more, but the commonalities are:<\/strong><\/p>\n\n\n\n
1.They have stuck to their guns and compounded over time<\/strong>.<\/p>\n\n\n\n
That financial firm that was started organically and is now super profitably, or that oil firm, wasn\u2019t super profitable in year one, if they were doing things organically.<\/p>\n\n\n\n
I know one guy who takes tens of millions from his business per year, but after the initial super-charged growth years, he has just compounded for about fifteen years.<\/p>\n\n\n\n
Getting 15%-30% compounded growth, over a long period of time, really adds up, once the business is at a certain level. Simple example. Let\u2019s say a business is already a very profitable small business, and the owner is taking $800,000 a year in dividends\/pay from the business.<\/p>\n\n\n\n
If that person is able to increase their dividends by 15% per year, they will be able to withdraw about $7.5m from the business in fifteen years. Obviously, it it easier said than done, as growth becomes more difficult as a business gets bigger.<\/p>\n\n\n\n
Getting 50% growth from a $100,000 a year revenue business is easier than getting 15% from a $3m business, where the profits are $800,000, let alone when it gets bigger still.<\/p>\n\n\n\n
Nevertheless, the point is that not everything is about big wins. Consistent compounded gains, over a decade or two, really adds up if the business is already doing well.<\/p>\n\n\n\n
Then of course you have inflation. In more \u201cnormal\u201d recent times, 2%-3% was the norm. Let\u2019s see if the current higher rate of inflation stays or not, as that impacts the \u201creal\u201d growth rate of a firm.<\/p>\n\n\n\n
2. They have taken advantage of unstable times<\/strong>.<\/p>\n\n\n\n
Recessions, pandemics, inflation and many other things bring about chaos but also opportunities.<\/p>\n\n\n\n
A lot of the businesses that have scaled organically at first, have taken advantage of these times. During 2008-2009, so many cheap acquisitions were completed, by firms who were cash rich.<\/p>\n\n\n\n
3. Hoping for a buy out<\/strong><\/p>\n\n\n\n
The first example I gave tends to be quite normal in financial firms, oil & gas and others.<\/p>\n\n\n\n
It is perfectly normal for these firms to be run by owners who don\u2019t want to sell, and in fact many want their kids to inherit the firms. Making dividends can be a key objective in this case.<\/p>\n\n\n\n
In the tech sector, building a business to sell out , seems like the name of the game for many. In reality, however, many of the firms who go down this route, end up raising money before starting the business.<\/p>\n\n\n\n
There is a simple reason for this. Many technology firms are unprofitable for years before making money. Amazon didn\u2019t make a profit for well over a decade.<\/p>\n\n\n\n
If you don\u2019t have outside capital , or the owner isn\u2019t already rich, it is impossible to sustain a business for that long organically, if it is bleeding money.<\/p>\n\n\n\n
So, I have seen more businesses that have been started organically, in areas where profitability has been achieved sooner, and the business can grow organically by reinvesting some of the profits.<\/p>\n\n\n\n
It is possible to grow a business to scale organically, just very difficult, especially in technology.<\/p>\n\n\n\n
We do have to remember that creating a very profitable business is difficult in any industry, otherwise everybody would do it.<\/p>\n\n\n\n
What is more common is a super profitable small business where the owner can make $500,000-$2m+ per year, but it never scales to something bigger.<\/p>\n\n\n\n
The problem is, many people aren\u2019t interested in the \u201cboring\u201d ways to scale a business organically.<\/p>\n\n\n\n
Sticking to your guns for decades, rather than trying to reinvent the wheel at every turn, doesn\u2019t seem glamorous to many people.<\/p>\n\n\n\n
<\/a><\/p>\n\n\n\n
How low will cryptos go?<\/h2>\n\n\n\n
I have no idea.<\/p>\n\n\n\n
I am not a huge fan of crypto as long-term followers know, and have yet to be convinced.<\/p>\n\n\n\n
What I do know is this. If anybody really believes that crypto will eventually become bigger, in a sustainable way, they should hope for the price to go down as low as possible and stay low for a decade.<\/p>\n\n\n\n
That will allow you to buy more, at lower prices. The same is true for real estate, stocks and other assets, but most people don\u2019t think like that.<\/p>\n\n\n\n
The major reason why crypto went up so much in 2020 and 2021 was that\u2026..the price was going up.<\/p>\n\n\n\n
The majority of people wanted quick gains, and had a fear of missing out (FOMO) on a perceived get-rich-quick scheme. Now the prices have fallen dramatically, fewer people want to get in.<\/p>\n\n\n\n
They are only likely to get in, when and if, the price starts rising. That is being a speculator. With any asset class, it is best to be an investor, and take a long-term view.<\/p>\n\n\n\n
What I also know about crypto is it hasn\u2019t done what it said it would do.<\/p>\n\n\n\n
It was supposed to be:<\/strong><\/p>\n\n\n\n
- A hedge against inflation. It hasn\u2019t done that. Inflation has came to developed markets for the first time since 1990 and it is down<\/li>
- A hedge against tyrannical governments. It hasn\u2019t proved to be free from the state. Some countries have banned it, and it is increasingly getting regulated<\/li>
- A hedge against falling stock markets. Not only has it not been a hedge, but in some ways it is acting like a leveraged NASDAQ ETF. Whenever technology stocks go up, it has gone up more than the market. Whenever they have fallen in recent times, crypto has fallen more.<\/li><\/ul>\n\n\n\n
<\/figure>\n\n\n\n
- Even gold, which hasn\u2019t done that well, has held up better, especially in Yen, Pounds, Euros and most non-USD currencies. This leads me to the last point. It hasn\u2019t been digital gold.<\/li>
- A medium of exchange\/a currency, and not an investment. It hasn\u2019t gained much traction in most parts of the world<\/li><\/ul>\n\n\n\n
So, there are two possibilities here. Either Bitcoin isn\u2019t a hedge against anything, as per Nassim Taleb\u2019s paper –https:\/\/www.fooledbyrandomness.com\/BTC-QF.pdf<\/a><\/p>\n\n\n\n
If you have this belief, then Bitcoin could fallen by over 90% or more.<\/p>\n\n\n\n
Or, we are in the first innings of this, and once smart contracts get bigger, we will go higher.<\/p>\n\n\n\n
In other words, we are where technology stocks were in the early 2000s after the crash, and before the advent of the iPhone and smart phones.<\/p>\n\n\n\n
\u00bfLe duele la indecisi\u00f3n financiera? \u00bfQuiere invertir con Adam?<\/strong><\/h3>\n\n\n\n
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<\/figure>\n\n\n\n<\/div>\n\n\n\n
- The get rich slow kind of millionaires<\/strong><\/li><\/ol>\n\n\n\n