Making Your First Million.pdf - Association of Net Entrepreneurs and ...

Making Your First Million
It's not only what you know, it's who you know. If you want to make real money you'll
need to cultivate your instincts, your global knowledge of the market, and your instincts
for people. This will take years and will involve bumps and bruises but this experience
will make the difference for you.
Always leave enough in the deal for the next person. Don't be greedy. Seek a balance.
You get what you give away after all. It's okay to make a profit but keep on the right side
of the line. Here's a cautionary tale, sadly all too true:
A community group had a parcel of land given to them by the Government. Along came
a shark from amongst their own people:
"I will help you develop this land" said the shark.
"What experience do you have?" inquired the group's chairman.
"What does that matter? You and I can make a lot of money." said the shark. "We'll
borrow as much as we can on the land and you give it to me. I will use the money to
develop the land and take 75% plus my costs. And I'll buy you a new car. No two cars.
And the group will prosper." Greed disguised as good works. Avoid it or you will carry
the albatross of guilt always.
You can also make money from the share market. If you take the 200 wealthiest people in
this country and look at how they made it, you'll find it was either through real estate or
through share trading. Ten years ago Kerry Packer was Australia's first billionaire.
Today, through intelligent share trading he's worth fifteen times that. We intuitively
understand real estate. The share market is less tangible. Let me give you a simplistic and
sanitized view of this real life war zone.
The purpose of a share market is to allow business owners to raise money from the
general public by selling part of their business. Generally the owner sells off part of the
business in a large number of small shares, and retains part-ownership of the company
which he or a board of directors continues to manage, taking the inflow of cash from the
float and using it to grow the business. The share market allows you and me to own part
of a number of different companies and to share in their profits and their capital growth.
Most shares return minimal profits of around 2% to 6% p.a. though this is usually largely
tax-free. The real profits are to be found in capital growth. The fluctuations in price of a
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