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How to Become a Billionaire
2/27/2020 12:23:46 PM
How to become a Billionaire

How do you become a billionaire I asked John Boyle?  His answer will surprise you.

The unassuming and humble Irishman, John Boyle was sacked from his job doing bread deliveries, so he started his own business in the small Irish town of Markethall in 1982. Although economies were experiencing boom and bust by 1989 his sports betting business had grown to 5 stores.  This expanded to 19 stores in 2002, 77 stores by 2004 and in 2006 he reached the milestone of 100 stores across Ireland and UK.  Today there are over 300 stores and an enormous online presence.
 

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The business growth has been one of taking opportunities as they arrive.  When competitor’s businesses were in trouble, he bought them saving jobs within the industry with each business purchased.  He also saw the opportunities of moving his business online and gaining access to the international markets and the clients he could attract through the internet and through developing his own apps.

As an investor myself, I was fascinated to know how John Boyle has grown his business and become a billionaire.  On a cold, wintery evening in Dublin, in February 2020, I had dinner with him and a group of entrepreneurs at an event organised by my business coach, Pat Slattery, and I asked John Boyle “how did you become a billionaire?” I waited with bated breath for his words of wisdom, his answer surprised me, “I partied” he said. “When the business was at 250 million euros I had a party celebrating it being worth a billion euros.  Just party as if you have already achieved what it is you want.”  

Mr Boyle’s philosophy is common among many wealthy people I have spoken to and it is that of mindset.  Whatever, you want to achieve assume you have already achieved it.  Act as if you are already where you want to be and it will happen.  It doesn’t mean that you just wish and wish for it and it will happen, you still need to take action and work towards your goal but by letting the universe know it is yours then your subconscious mind will work hard to make it a reality.

As we continued chatting John Boyle asked me what was my goal?  I explained where my investments were at this stage, how they had stagnated and I was trying to break through a plateau and he said “great, set the next level and let’s have a party.”

How do you become a billionaire?  Have a party.


John Boyle & Karen Newton Dublin February 2020



Making Money Made Simple
2/26/2020 12:16:56 PM

Making Money Made Simple

Making Money Made Simple by Noel Whittaker & Roger Moses was the very first book I ever read about investing.  Originally published in New Zealand & Australia in 1989 it is part of a series of 3 books which take you from school leaver to retiring.
 


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Noel Whittaker was Australian and Roger Moses a New Zealander and together they co-wrote the books with emphasis on what was available financially within their countries. 

I started Peer-2-Peer investing with Roger Moses in the early 1990’s.  This type of investing was pioneering at that time but now common place with online platforms providing access to Peer-2-Peer lending opportunities almost worldwide.

The book consists of 41 chapters split into 6 sections.  They are

The Basics – understanding the basics of money.  This section covers the Compounding Effect and the importance of allowing investments time to work. Budgeting so you know how much is coming in and how much is going out. Importance of planning and setting goals for success.

Borrowing – Credit Ratings and good and bad debt.  It goes through the hidden traps and additional costs that a borrower may not be aware of.

The Essentials – which covers buying a home and a car.  Having adequate insurance and pensions

Investments – a variety of investment strategies include property, shares, bullion, insurance bonds, futures and alternative investments.  What is category is and how to get started with these types of investments.

Making it work for you – consists of frequently asked question, common types of letters about money to people of different ages and in different parts of their lives, how to get out of financial difficulty and examples of different situations people find themselves in.

Conclusions – talks about the way to wealth, keeping motivated, how to overcome the brick wall and keeping a balance in life.

This was a pioneering book in it’s day but still has relevance today in putting plans and goals together to achieve financial success and how to retire debt free and on a good pension.

Making Money Made Simple is exactly that.  Putting investment and life finance strategies into a simple to follow plan in plain English.  I highly recommend this book..

How High will Gold Go?
2/21/2020 4:36:57 PM

How High Will Gold Go?

During the Great Recession of 2008-2014 the UK economy saw Gold hit a high of £1163.49 on the 9th September 2011 today as it has hit a high of £1273.14 we ask the question how high will gold go?


During difficult times gold and silver bullion are a safe haven to protect investments and in February 2020 this is most apparent due to the Coronavirus C-ovid19 which has hit the global economy since December 2019.  With no end in sight to the spread of the virus and many places going into quarantine the likelihood of trade struggling and the fear of countries going into recession means gold and silver bullion are favoured investments.

The airline industry has announced it is expected to lose up to $30billion as people take fewer flights.  The Asian airline are expected to be the worst hit.

In the final quarter of 2019 Japan announced it’s economy had shrunk by 1.6% with a risk of recession.  These were based on data produced up to 31st December 2019 before the threat of the coronavirus had been announced.  The effect on the Japanese Market will no doubt push the country close to if not into recession for the first quarter of 2020.

China is in lock down with many manufacturers and resellers struggling to fill orders as their materials and stock are stuck in Chinese ports. These industries will be greatly affected until the quarantines are removed.  Oxford Economics has estimated the cost to the World Economy will be around £850 million while the IMF (International Monetary Fund) have described the world economy as fragile.


Ronald-Peter Stoeferle of Incrementum AG researched global gold trends and comparisons to the 1970’s gold bull market.  In discussions with Mike Maloney of GoldSilver.com they talked about the similarities of the 1970’s bull market and the current bull market and when overlaid one on top of the other they are following a similar trend.  The 1970’s bull market suddenly accelerated in value from 1975 – 1978 which indicates the current cycle could continue upward for the foreseeable future especially with the global economy being so fragile.

How high will gold go?  Your guess is as good as mine but it is feasible it will go up to or beyond £2000 an ounce over the coming months especially while the coronavirus has such an impact on global economies. It will be interesting to watch.

For more information on our investing courses email info@2pound73club.co.uk

How to Use Investment Cycles
2/18/2020 1:14:14 PM

Investment Cycles

Every investment has a natural cycle for when it is popular and not so popular.  When prices are high and prices are low.  Investors are looking to buy low and sell high.  It’s how they make their money. If the general public are selling then investors are the ones buying.  When the general public are buying, investors will be selling.  There always has to be a buyer and a seller. 

Investors specialise in finding investments that are out of favour with the general public and buying them at a low price.  When the investment becomes popular again and there is demand for the asset the price will go up and investors will start selling the asset.  The asset can be anything that has a deemed value.

Throughout our training courses, we cover 4 categories of investing – business, property, paper and cash.  Within each of those categories are different types of investments for example in the property category there is residential property that consists of single lets, multi lets, hmo, apartments and student lets as just some examples of residential property.  But you also have commercial property, holiday lets, garages, storage.  All examples of different types of property investments. There are hundreds of different types of sub-categories within each type of investment not just property.  All of these types of assets have their own investment cycles that go up and down.  As an investor you can buy into any downward trend sub-category ready for when the next upward trend begins.

The question I am always asked is how do you know the cycle is at the bottom and ready to go up? 

It would be lovely to say I have a crystal ball that says invest now.  It doesn’t work that way.  What you need to do is look at what the markets are doing and assess where you think that investment is.  Then cross your fingers, take a deep breath and hope like hell you have reached the turning point. 

When analysing an investment, I always assume that it might go down slightly when I buy it.  Be prepared.  If it does go down don’t panic. It will go up. Your timing just wasn’t quite perfect but you’ll get it right next time. 

 

 

Investment cycles vary in time for each investment.  The gold bullion cycle can last decades.  Property investment cycles usually cover a recession whether that be a year, 5 years or a decade.  A tip is to look at the trends for recessions within your country.  Then overlay the property cycles and you will notice a pattern of when prices go up and prices go down.  It doesn’t just need to be property.  You can apply this to any asset and see how it is affected during the recession cycles.

Once you buy the investment at the low level, sit back and wait for it to grow and either cash out at the high or as close to a high as you can. Or you could hold the investment and let the next cycle kick in and do its thing.  It is unusual for a low to go down below a previous low.  Inflation, usually ensures the low is higher than the last time. 

Imagine a coil, continuous going around in an upward spiral.  This will represent the bottom of the investment cycle the asset you are investing in.

Example 1 -  I purchased property in 2002 for £35,000 the property went up to £120,000 by 2007.  During the recession the value dropped and the new low was £95,000.  More than £60,000 higher than the previous low and this was during one of the worst recessions in history.  Property prices are again rising.  Who knows where the new high will be.  Already house prices are higher than the 2007 price.  There’s probably room for them to go even higher.  I wouldn’t be surprised if the new high isn’t around £150,000+ for that property.  Just watch the cycles and see what happens. Be realistic if you are waiting for prices to drop back down to start investing. Don’t expect the property to drop back down to £35,000 as that is highly unlikely to happen.

Example 2 – I started buy Gold Bullion in 2004 when the price was around USD400 by 2008.  I was then selling at around USD1822 in 2011 even though the price kept going up to USD1896.  The price of Gold bullion dropped by January 2016 to USD1100 but today is trading at USD1587.  Where will it go this year is anyone’s guess.  20 years ago, it was trading at USD200 will it go back down to that level is very doubtful.  Inflation and demand will probably keep it at the higher levels.

Every investment has a cycle.  To take advantage of the cycle investing you have to track the data, keeping your own records.  Identifying where you believe the cycle is and where you believe the price will move next.

A tip I can offer is to watch the newspapers.  When the newspapers say this is the best performing investments and the next best investment, you know the general public will be buying and the price going up.  When the paper suggests you get out of an investment the general public will be selling and the price going down.  An investor is contrarian to the general public.  That is when they sell an investor buys, when the public buy an investor sells.

Every investment has a natural cycle.  Making money from an asset is about understanding where it is in the investment cycle and being contrarian.

 

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