Showing posts with label Important Facts & Stories. Show all posts
Showing posts with label Important Facts & Stories. Show all posts

Friday, July 12, 2019

Why Most Lottery Winners Go Broke

Have you ever wish you can win millions of dollars from a lottery purchase. The chances of winning the lottery is so slim that it’s more likely you get strike by the lighting compared to winning lottery jackpot. It’s a no brainer that winning the Lottery is everyone’s’ dream. I myself wish I can win millions of dollars from purchasing a lottery ticket. Winning the mega million dollar lottery can be most ecstatic moment for anyone who chose the right numbers. Winners that have won millions of dollars have so much money that they don’t ever have to work in their life ever again. However if you actually study most lottery winners who had won the jackpot actually went broke in the end. There are studies that lottery winners are more likely to declare bankruptcy within three to five years compared to the average American. An estimate of one third of lottery winners later had to go through bankruptcy. In addition, studies also found that instead of getting people out of financial trouble, winning the lottery instead got them into more trouble. How could it be possible if they have won so much money? In this article, I’ll explain why most lottery winners go broke in the end.

Wednesday, July 10, 2019

How Warren Buffett Become Wealthy and Successful

Many value investors out there probably know who Warren E. Buffett is. If you don’t know him yet, let me give a short summary about him. Warren Buffett is an American successful investor, business man as well as a benevolent philanthropist. He was born in August 30, 1930, and apparently he is still alive as this article is written in the year of 2019. He is considered as one of the most successful investor in the world that inspired many people. Many value investors try to understand how he invests and replicate his strategy. I as a dividend growth and value investor am inspired by his success and teachings. Even though I had never met him in real life; however I became really inspired by him for his investment ideology and respect him for his benevolent philanthropist act to the society. As this article written today (June 30, 2019), Warren E. Buffett has an estimated net worth of $87.5 billion USD making him the third richest person right before Bill Gates and Jeff Bezos. Having him to be one of the richest people in the world is not the reason why I idolized him so much. Warren Buffett is not the typical rich person that spent his money on materialistic things such as fancy cars, huge mansion, or lavish yachts. He lives just like the typical average American who purchases his breakfast at McDonald every day before going to work. In addition, he still lives at the same modest home he purchased back in 1958 for $31,500 or about $250,000 if adjusted with inflation. Like I said, he is not the typical rich people who want to have lavish things and life style but he is just a humble person that loves to build his business empire that will eventually go back to society. He pledged more than 99% of his wealth will go to philanthropy during his life or at death and he couldn’t be happier with that decision. I’m so amazed of his generosity since he has dedicated his life building his wealth without much inheritance from his parents. He didn’t come from a wealthy family but an average middle class family and through hard work and dedication; he has built the fortune he has today. I love building wealth and doing business just like Warren Buffett and believe that wealthy people who is in the 1% wealth list should donate at least 50% of their wealth before or after their death. My dad similar to Warren Buffet who started from nothing, and he is considered to be wealthy today; however I don’t see his wealth as my success. I believe in building my own score card and fortune just like my dad and Mr. Buffett; and I would not be upset if my parents decide to give away their wealth to charity later on. I mean after all I believe that their wealth is theirs and I don’t want them to feel obligated. However, if my dad let my brother and me to inherit his business legacy, I would still continue to expand his wealth. It would be better for me and my brother to grow the wealth since my dad has already built the tree for us which gives tremendous head start. However, towards the future if I become really wealthy, I might pledge to give away up to 50% of my wealth to charity after my death. Anyways let’s not get distracted about me being philanthropy; I’m still far from being in the 1% list!  Let’s go back to topic of Warren Buffett. After understanding his stories of his success and the amount of wealth he accumulated, you readers might wonder how on earth he does it. I myself was curious on how Warren Buffett did it. After doing many bibliography studies and research about him, I learned how Warren Buffett became successful and wealthy therefore I’m here to share his stories with you guys.