Posted on 02/13/2023 2:23:36 PM PST by Fido969
I’ve made good money in my life in the stock market. Lost some too. It’s not all speculation, it takes research on particular investments and an understanding of the economic conditions (which are subject to change). But there are no guarantees and I would certainly not recommend borrowing money for it as that is nonsensical.
Stupidity sometimes just can’t be cured. Some of the kids that are playing in the stock market through Robinhood and other such sites are looking for get rich schemes. They know nothing of stocks, the economy, and what news may make the market go up or down. They do no research on a company’s fundamentals, can’t read reports, and just assume that if you buy a stock at a certain price, the stock goes up in value each following day.
A commenter on one site regarding a stock that was being discussed actually stated, “I hope this stock goes up this week, my rent is due next week”. And he was serious! You don’t put the rent money into stocks anymore than you put your rent money in the slot machines. You will NOT win! And the rent will still be due.
If he could put a minus sign before the 10% on the promissory note and convince the court that it was always there he might be ok.
I had a -10% return on my investments over the last year and frankly I think I did pretty good.
I worked with a company that dealt in a particular commodity. They had long-term contracts for manufacture and delivery, and the raw material would fluctuate in price.
So, for them, options were a perfect business-related solution. No problem with that activity on the balance sheet and P&L.
Of course, after a while, the buyers and execs started getting fancy and started getting options for more than they needed to hedge the production requirements.
All fun and games until the inevitable big loss came along.
This person is a fool. If he owed me money I’d send someone to his house to motivate him.
He is going to be a lonely guy.
“I took on a large cash infusion of $500,000 from friends and family under the guise of a promise I made to issue a 10% return on their money.”
What a maroon.
One day after a long presentation about market segment, equities v bonds, etc, I burst out “Why would anyone put their money in this stock market? Why not just put it in cash and wait it out?”
Everyone looked at me like I was from Mars.
Meanwhile, the managed investment portfolio is down 10% over the last year.
My wife's IRA sitting in government money funds has been making 4%.
Find another line of work, moron.
Options and futures are a fool’s errand.
I don’t know who are the greater fools, you or the idiots who gave you money.
Amen
” It’s not all speculation, it takes research on particular investments and an understanding of the economic conditions”
The basic rule for investing: You will make money if you are in the top few people on the planet in terms of knowledge of that market. If you aren’t one of those few you are one of the suckers.
Learn everything there is to know about manganese futures, pet food manufacturers, or Michigan municipal bonds. You can then do very well.
Don’t ever expect to know more than the market about what is going to happen to Apple or Yen exchange rates.
Play with that kind of money, I bet he’s got more than enough assets to pay everybody back, even if he’s broke once done. That’s what he should do, publicly, whining about is a bit embarrassing.
On the family side, a lesson I learned long ago is to never loan money to a friend or family member more than you are okay with losing.
You love the pompous use of the term to obscure the fact that he BORROWED money.
A blowtorch and pliers come to mind...
If I lend money to family or friend, in my mind I assume I will never be repaid. It makes my life much better.
Actually, I will tell them: "I am giving you this money".
The only time I said it was a loan was when my ex-wife asked me to "lend" her some money, which I did, telling her I hoped she'd pay it back as soon as possible
(I knew she never would.)
Since then, she takes pains to avoid me.
Them: “Give me some of your money to invest”
Me: “No”
Seppuku may be your best option as opposed to being skinned alive…
Your mother is doing it better than you.
The object of filing your tax returns is to neither get money back or have to pay.
Buy your mother a small cup of coffee at Dunkin Donuts and call it a day.
This is a sad and painful lesson to learn. Here is my suggestion:
If you have to, borrow the money to make good on your word. Explain to your family/friends that the returns did not come through, and how foolish you were to promise such a thing. Tell them that you have borrowed/come up with the money to pay them their 10%, as that is what you promised. It has nothing to do with a signed note, it is your word.
If they want their money, then give it to them. If they are prone to have some forgiveness and take less than the 10%, consider yourself fortunate to know such gracious people.
Work your way out of the debt (if incurred), keep your word the hard way, and never promise something so elusive again. You can still come out being a person of honor.
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