Aces In Yellow

Sunday, March 25, 2007

In this world you are useless without capital

I've really come to believe that the only way to make big money is to have big money. No matter your level of competence, if you didn't have money, you can't generate big money. There's several reasons I really believe this. One has to do with my poker playing. I don't care how good you are, but how are you going to play without money? My friend argued that if you only had $1 but was promised to be dealt pocket aces every hand, you'd still go broke despite playing flawless by going all in everytime preflop.

I've also been reading Warren Buffett's biography: Buffett: the making of an american capitalist. I've no doubt he's amazingly skilled when it comes to investing, but he had to convince dozens of people that he was good enough to warrant them risking their capital with him. All of his partners consisting mostly of family and friends invested with him to everyone's gain. That was when he first started out. But lets put Warren Buffett in a different situation. Let's say he is a racial minority in a poor city with his amazing mind and abilities. How will he come up with the capital to invest? Will his family and friends be able to come up with figures over 5 or 6 digits so that he could invest? Unlikely.

Fact of the matter. Skills with no money = no money. Money with no skills = likely no money, but you still have a better chance than the skillfuls with no money. Skills and money = likely money.

20 Comments:

At 1:00 AM, Anonymous Anonymous said...

so you are an american...
Can you muster 2000 US dolars in personal welth. Then your welth is higher then 50% of the worlds population. Do as well as warren buffet in 40 year that is 3.000.000 most sertanly in the 99 perscil of the world.....

 
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