$1M Question

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Volumeusa
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$1M Question

Post by Volumeusa » Fri Jun 08, 2018 12:56 am

With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?

AlohaJoe
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Re: $1M Question

Post by AlohaJoe » Fri Jun 08, 2018 1:00 am

There is no kind of investing that will do that.

There are several kinds of gambling that might.

I would also tell that person to stop wasting their life hoping for get rich quick schemes.

Volumeusa
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Re: $1M Question

Post by Volumeusa » Fri Jun 08, 2018 1:13 am

AlohaJoe wrote:
Fri Jun 08, 2018 1:00 am
There is no kind of investing that will do that.

There are several kinds of gambling that might.

I would also tell that person to stop wasting their life hoping for get rich quick schemes.
Point taken.

"When most people say they want to be a millionaire, what they really mean is 'I want to spend a million dollars,' which is literally the opposite of being a millionaire. This is especially true for young people. A key use of wealth is using it to control your time and providing you with options. Financial assets on a balance sheet offer that. But they come at the direct expense of showing people how much wealth you have with material stuff." ---Psychology of Money

GoldenFinch
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Re: $1M Question

Post by GoldenFinch » Fri Jun 08, 2018 1:15 am

I don’t know, but you could definitely make $240 bucks if you put it in a 2% CD.

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aegis965
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Re: $1M Question

Post by aegis965 » Fri Jun 08, 2018 2:51 am

r/wallstreetbets
I may be biased.

Call_Me_Op
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Re: $1M Question

Post by Call_Me_Op » Fri Jun 08, 2018 6:42 am

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
Surely you must be joking Mr. Feynman.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein

renue74
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Re: $1M Question

Post by renue74 » Fri Jun 08, 2018 8:05 am

You're on a forum that focuses on index investing, high rate savings, and living semi-frugally.

It's like going to a forum of tattoo artists and asking how to change the brake fluid in a 1982 Chevy Chevette.

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tennisplyr
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Re: $1M Question

Post by tennisplyr » Fri Jun 08, 2018 8:07 am

Things easily attained are usually not worth having.
Those who move forward with a happy spirit will find that things always work out.

goblue100
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Re: $1M Question

Post by goblue100 » Fri Jun 08, 2018 8:13 am

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
I'm pretty sure this board would not call this investing, but the best chance would be something highly leveraged. Commodities futures comes to mind. Obviously you are more likely to lose everything.
Can't take it with you when you're gone | But I want enough to get there on - Rollin with the flow - Jerry Hayes

Jags4186
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Re: $1M Question

Post by Jags4186 » Fri Jun 08, 2018 8:22 am

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
Invest in penny stocks. All you need is two 10 baggers to get to $1,000,000. Every day there is a 10 bagger penny stock.

Good luck!

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k66
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Re: $1M Question

Post by k66 » Fri Jun 08, 2018 8:39 am

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
OK, so now that we have generally ascribed this as a preposterous dream on the surface (i.e. investing $12k with a $1M return in 365 days or less), let's examine it a little closer.

The return factor is 83 and a third, which necessitates a steady compounding of 145% per month or, alternatively, a little under 9% per week. Would loan-sharking on the street or running a pay-day loan operation even allow you that kind of return?

However, if you are serious about the prospects for accumulating wealth, then low-fee broad-market index investing is probably the most reliable way to do this... but it will take time and diligence.
LOSER of the Boglehead Contest 2015 | lang may yer lum reek

Alf 101
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Re: $1M Question

Post by Alf 101 » Fri Jun 08, 2018 9:31 am

Not necessarily to derail the thread, but a better question might be, if someone came to you at age 21 with $12,000, what's the best way to make $1M?

Let's assume also, that this person is of average or slightly average means. A quick web search -- not verified through multiple sources -- for average US household income gives a median around $57K and a mean around $79K. Let's say we're somewhere in that range.

The answers given will be common sense ones within the BH community, but may be illustrative for this thread nonetheless...

Jack FFR1846
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Re: $1M Question

Post by Jack FFR1846 » Fri Jun 08, 2018 9:48 am

The OP's question, while clear, does not delve in far enough. I would like to modify this as the question has indeed been addressed and answered by Steve Martin.

New Question: How do I get a million dollars and never pay taxes?

Answer: First, get a million dollars. Then, when the tax man comes to the door and says "You have never paid taxes", you answer with what will 100% guaranteed protect you...."I forgot".

So there you have it. Both investing and tax advice from one Wild and Crazy Guy!
Bogle: Smart Beta is stupid

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zaboomafoozarg
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Re: $1M Question

Post by zaboomafoozarg » Fri Jun 08, 2018 10:03 am

aegis965 wrote:
Fri Jun 08, 2018 2:51 am
r/wallstreetbets
WSB? On my Bogleheads? It's more likely than you think!

kaeltor
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Re: $1M Question

Post by kaeltor » Fri Jun 08, 2018 10:09 am

I have the same goal,but my timeline is a lot longer.

~21K networth now... slowly but surely gaining ground (unless market takes a dive!)

Check out the responses in the thread I posted.

viewtopic.php?p=3956362#p3951810
Last edited by kaeltor on Fri Jun 08, 2018 10:11 am, edited 1 time in total.

NoHeat
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Re: $1M Question

Post by NoHeat » Fri Jun 08, 2018 10:09 am

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
I looked through a list of currencies that use the dollar sign. Investing in the Chilean peso looks like the best choice for your purpose. With the exchange rate of 0.00158, $12k USD will convert into $7.6 million CLP.

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goodenyou
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Re: $1M Question

Post by goodenyou » Fri Jun 08, 2018 10:16 am

I assume you are only considering legal ways to do it. Then it would be nothing would achieve a return like that.
"Ignorance more frequently begets confidence than does knowledge" | "The best years you have left are the ones you have right now"

CurlyDave
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Re: $1M Question

Post by CurlyDave » Fri Jun 08, 2018 12:05 pm

Long ago, and on a different board, I read the advice: "Get rich slowly".

I took that advice to heart and have done it. It surely is nice to think about being the next Bezos, Buffet, or Gates. But then reality rears its not so ugly head, and I realize that DW and I have made it into the top 1%. Not a bad place to be at all.

And, we did it by making high probability choices. If you take that $12k and invest it for 40 years you only need a CAGR of 11.7% to turn it into $ 1 million. If you add to it along the way the necessary growth rate is way less.

The choice is open. Invest it now, and hold on and you can have a lot when you are old. Or you can have very little when you are old.

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bligh
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Re: $1M Question

Post by bligh » Fri Jun 08, 2018 12:16 pm

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
If a dummy like you (as you claim) could turn $12K into $1M in one year (without turning to crime!), we'd all be doing it.... every year.

The legal way to doing it is essentially gambling (in any of its forms .. casinos, lottery tickets, sports betting, options). The odds will be against you (in some cases, heavily against you) but you might win. So, be okay with, and expect to lose the $12K.

I strongly recommend against gambling with your $12K if that is everything, or even a significant fraction of what, you have.

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Toons
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Re: $1M Question

Post by Toons » Fri Jun 08, 2018 12:37 pm

Can You "break in" to Fort Knox??


:mrgreen: :mrgreen:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

LiterallyIronic
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Re: $1M Question

Post by LiterallyIronic » Fri Jun 08, 2018 1:00 pm

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
Obviously there's not going to be any guaranteed way to make $1 million from $12k in one year, or everyone would be doing it. There would be some (very) longshots you could try, but none of it would be investing and none of it would be sanctioned by this forum.

I see your (legal) options as:

1) Buy $12k in lottery tickets and hope for the best.

2) Spend $12k to make yourself look wealthy (lease a car, dress nice, etc) and convince a wealthy person to marry you without a prenuptial agreement.

3) I was going to suggest reading into the laws about squatting to make sure you do everything by the book and spend the $12k to squat in a million dollar house, then sell it when you have acquired legal ownership of the house - but I think that will take more than one year in every state.

4) Buy $12k in Bitcoin (or another cryptocurrency) and hope for the best. Even if it shot up dramatically, you'd probably still have to market time it like a madman, buying and selling on all the right days for a year. Good luck.

5) Spend $12k building and marketing a mobile app and hope it takes off like crazy.

Absolutely none of those will work, but I would guess that #2 would have the highest odds of working.

A get rich slowly scheme will work much better.

Engineer250
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Re: $1M Question

Post by Engineer250 » Fri Jun 08, 2018 1:02 pm

Toons wrote:
Fri Jun 08, 2018 12:37 pm
Can You "break in" to Fort Knox??


:mrgreen: :mrgreen:
Old school. I was thinking hack into a Bitcoin exchange maybe.
Where the tides of fortune take us, no man can know.

alex_686
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Re: $1M Question

Post by alex_686 » Fri Jun 08, 2018 1:07 pm

Lets assume you have $10,000. Makes the calculations easier.

That is you want a 9,900% annual return. Or a daily return of 1.26%, if we assume a 365 day year. However if you want that type of return you are going to have do some day trading, and there are only about 250 trading days in a year. So a 1.86% return a day.

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parsi1
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Re: $1M Question

Post by parsi1 » Fri Jun 08, 2018 1:43 pm

easy
1- invest 100% in SDOW
2- when it double sell it all and invest 100% in UDOW
3- when it double sell it all and go back to step 1

Haven’t tried it yet but it might work.

JimmyJammy
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Re: $1M Question

Post by JimmyJammy » Fri Jun 08, 2018 1:57 pm

Not even buying Bitcoin a year ago (and selling at peak) would have done that for you. But maybe 5 years ago.

JoeRetire
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Re: $1M Question

Post by JoeRetire » Fri Jun 08, 2018 2:01 pm

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
Invest in lottery tickets and hope for the best. Most likely you will learn a $12k lesson on high-risk investing.

And it doesn't matter how sincere you are, it isn't going to happen.

tesuzuki2002
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Re: $1M Question

Post by tesuzuki2002 » Fri Jun 08, 2018 4:55 pm

GoldenFinch wrote:
Fri Jun 08, 2018 1:15 am
I don’t know, but you could definitely make $240 bucks if you put it in a 2% CD.
that will buy a bit of :sharebeer

Pelerus
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Re: $1M Question

Post by Pelerus » Fri Jun 08, 2018 11:28 pm

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
If you had asked this question a bit earlier in the year, you could have turned your $12k into $1,032,000 by buying out of the money put options on the XIV before it blew up, just like these guys did.

https://www.bloomberg.com/news/articles ... n-colorado

Their key observation: the market appeared to be pricing an event (XIV going to zero) as an extreme outlier (1 in 5000 chance) that they assessed as much more mundane, relatively speaking (1 in 5 years).

Were they right, or just lucky?

aristotelian
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Re: $1M Question

Post by aristotelian » Sat Jun 09, 2018 2:21 am

How much risk are you willing to take? Best options I see are some horse other than Justify in the Belmont and then an obscure crypto. There is a slight chance that you will not succeed.
Last edited by aristotelian on Sat Jun 09, 2018 3:23 am, edited 1 time in total.

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pokebowl
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Re: $1M Question

Post by pokebowl » Sat Jun 09, 2018 2:46 am

aegis965 wrote:
Fri Jun 08, 2018 2:51 am
r/wallstreetbets
If you are going to link to such a place of awe and wonder, you better have at least half your portfolio in meme stocks on margin. :beer
There is nothing more expensive than something offered for free.

Volumeusa
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Re: $1M Question

Post by Volumeusa » Sat Jun 09, 2018 2:57 am

alex_686 wrote:
Fri Jun 08, 2018 1:07 pm
Lets assume you have $10,000. Makes the calculations easier.

That is you want a 9,900% annual return. Or a daily return of 1.26%, if we assume a 365 day year. However if you want that type of return you are going to have do some day trading, and there are only about 250 trading days in a year. So a 1.86% return a day.
Other users have deduced the following ways to get rich quick; I am synthesizing them in order to get to the cold, harsh truths of getting rich slowly. Since I haven't read enough books, I'm also adding my own questions.

1. Assuming you start with $10k, to get to $1M in one year, you need a 9,900% annual return or a daily return of 1.26%, if we assume a 365 day year. If you want that type of return you are going to have do some day trading, and there are only about 250 trading days in a year. So, a 1.86% return a day.

Has anyone accomplished such a feat in micro-trading history?

2. Invest $10k to build and market software (understanding the cost of user acquisition and monopolizing your idea) for the web, mobile, and PC. As Peter Thiel says, "Competition is for losers."

Regarding the overnight (and often exaggerated) tech unicorn success narrative, what are some key lessons traditional investors need to take from Silicon Valley companies and venture capital firms?

3. According to Jack Bogle's interview on Fox tonight, invest $10k in VTSMX or VTSAX, and hold it for at least 25 years (reinvesting earnings). He also mentioned that his favorite holding period of stocks is forever.

If you hold a stock forever, how do you actually earn money? Most people tell me, "It's the magic of compound interest." But if you keep reinvesting earnings, do you have to eventually sell shares to get money, i.e. how does Warren B earn money by owning shares of Coca Cola forever?

4. It seems to me that there are five kinds of businesses that produce the greatest good for the greatest number:

1) Commission on every sale (Amazon and Walmart)
2) Advertising sales (Google and FB)
3) Licensing sales (Microsoft and IBM)
4) Insanely Great Product sales (Apple and Tesla)
5) Insanely Great Service sales (Verizon, AT&T, Comcast)

These are all big tech names, but several companies on the stock exchange are producing insanely great value, so my question is, quite bluntly: what tickers should I throw money at given that I intend to hold it forever--- and more importantly, what is the correlation between this monkey dart approach to picking stocks that are "GRAS--- generally recognized as safe" (to borrow a term from the Food & Drug Administration) versus the kind of picks that big-league investors like Charlie Munger make? Is it just the amount of money they have to throw or patience or quantitative analysis or founder assessments... what is creating the value here?

...

Today, I asked a friend how he made $3k on Robinhood on a random tech stock, he simply said, "I put money in, I got money out."

I'm starting to think I've read one too many fairy tales...

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meowcat
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Re: $1M Question

Post by meowcat » Sat Jun 09, 2018 7:39 am

Volumeusa wrote:
Sat Jun 09, 2018 2:57 am
what tickers should I throw money at given that I intend to hold it forever--- and more importantly, what is the correlation between this monkey dart approach to picking stocks that are "GRAS--- generally recognized as safe"
No one knows the answer to that question, including Warren Buffett. On these boards, here, we buy all the tickers.
More people should learn to tell their dollars where to go instead of asking them where they went. | -Roger Babson

MrJones
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Re: $1M Question

Post by MrJones » Sat Jun 09, 2018 7:45 am

Earn $5M this year and put it, along with the $12k into a handful of individual stocks. Voila!

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PhysicianOnFIRE
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Re: $1M Question

Post by PhysicianOnFIRE » Sat Jun 09, 2018 7:48 am

Blackjack. Not investing, but it wouldn't take a year. Just a great five minutes (and a casino that would let you bet these amounts).

$12k
$24k
$48k
$96k
$192k
$384k
$768k
$1,536k

If you win seven hands in a row, you're there. Roulette could give you the same outcome. Of course, the odds of winning 7 times in a row are 1 in 2 to the 7th power, or 1/128.

So 127 out of 128 chance you walk out broke. But I'm telling you there's a chance.

:beer
-PoF

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ClevrChico
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Re: $1M Question

Post by ClevrChico » Sat Jun 09, 2018 8:40 am

Discover a large amount of oil on your farm and sell rights to an oil company.

larsm
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Re: $1M Question

Post by larsm » Sat Jun 09, 2018 9:41 am

Easy. Invest in Yourself.

First approach: A. Live a pious life. B. Go to Church everyday. C. Pray real hard. D. Buy $12,000 in Lottery tickets. E. Hope A., B., and C. affect D.

Less Easy.

Second Approach: A. Make certain you are buff. B. Spend money on set of good clothes. C. Rent a flashy car. D. Hang out where rich widows do. E. Hope you can seduce one into marriage before your $12,000, or one year deadline, is gone.

Less. Less. Easy.

Final Approach: A. Invest in a gun. B. Rob a lot of banks. C. Don't get caught.

Hope this helps... :sharebeer

dharrythomas
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Re: $1M Question

Post by dharrythomas » Sat Jun 09, 2018 11:45 am

Volumeusa wrote:
Sat Jun 09, 2018 2:57 am
alex_686 wrote:
Fri Jun 08, 2018 1:07 pm
Lets assume you have $10,000. Makes the calculations easier.

That is you want a 9,900% annual return. Or a daily return of 1.26%, if we assume a 365 day year. However if you want that type of return you are going to have do some day trading, and there are only about 250 trading days in a year. So a 1.86% return a day.
Other users have deduced the following ways to get rich quick; I am synthesizing them in order to get to the cold, harsh truths of getting rich slowly. Since I haven't read enough books, I'm also adding my own questions.

1. Assuming you start with $10k, to get to $1M in one year, you need a 9,900% annual return or a daily return of 1.26%, if we assume a 365 day year. If you want that type of return you are going to have do some day trading, and there are only about 250 trading days in a year. So, a 1.86% return a day.

Has anyone accomplished such a feat in micro-trading history?


3. According to Jack Bogle's interview on Fox tonight, invest $10k in VTSMX or VTSAX, and hold it for at least 25 years (reinvesting earnings). He also mentioned that his favorite holding period of stocks is forever.

If you hold a stock forever, how do you actually earn money? Most people tell me, "It's the magic of compound interest." But if you keep reinvesting earnings, do you have to eventually sell shares to get money, i.e. how does Warren B earn money by owning shares of Coca Cola forever?
I'm only going to address the two questions above.

1. Hillary Clinton turned $1,000 into ~$100,000 in roughly a year in commodities and then she quit. High leverage, high risk, and there were accusations of some funny business with Tyson--never proved in court.

3. Eventually, you have to either spend dividends or sell a few shares or both if you want to spend some of the money.

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Sandtrap
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Re: $1M Question

Post by Sandtrap » Sat Jun 09, 2018 12:18 pm

Entrepreneurship.. . . and a huge amount of luck.

For example:

Bitcoin or other crypto.
Pay Day Loans.
Pawn shop .. . also loans.
Vegas
Lottery
Pyramid or multi level things.

chevca
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Re: $1M Question

Post by chevca » Sat Jun 09, 2018 12:25 pm

Volumeusa wrote:
Fri Jun 08, 2018 12:56 am
With utmost sincerity, a dummy with $12k (me) walks up to you and asks:

Via investing of any kind, what can I do to make $1M in one year from now?
Call Bernie Madoff and ask him this question. :happy

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