How to Become a Millionaire in 11 Years, 9 Months, and 8 Days
In this short article you will learn exactly what it would have taken to become a millionaire starting on January 1, 2008 and ending on October 8, 2019. The money injection conditions were as follows: You must have started with $50,000, added $565 to your account every month, and made a total of 15 trades along the way. The investment conditions were: You must have purchased just one of two different securities on each of those 15 trades. Your money would have compounded exactly as is shown in the accompanying chart.
What is different about the opening paragraph—as compared to (probably) all similar claims—is that 4 years of the performance data did not rely on the usual fallacy contained in this proviso: “If I knew on January 1, 2008 what I know today, then ….” The model that produced the results has been free running on its own since June 1, 2015. The model reacted to every day’s closing price of the SP500, back-tested to 2008, recalibrated a few times, then was set free on June 1, 2015 to run on its own with no further knowledge of how the markets might perform after that date, and with no further calibrations. What’s more it is running freely today, with no further changes, and with no knowledge about what tomorrow holds. In the next 10 years, it is expected to produce much the same returns as long as the markets remain much the same.
The reasons for the qualifying comments are these: The securities in it did not exist prior to 2008. It therefore took a few years of data to track their performance. Also, two of the major software models used to analyze the markets did not exist before 2013. It took 2 additional years of intensive study and use before the final model with its unique algorithms was perfected in 2015.
One major glitch in the markets that was not foreseen is the extraordinary volatility since January 20, 2017. That volatility has been due almost exclusively to the erratic behavior of the U.S. president. Although this model has responded well to the events since 2017, the recent volatility is unprecedented. World markets are interconnected, and the behaviors of a few key figures can upset them all.
The model reacts to an algorithm that determines which of two different securities to be invested in. As good as it is, only 6 of the 15 trades were actually needed. 9 were not needed, so it isn’t perfect. But it corrected itself after each of those 9 false signals with virtually no effect on the outcome. Beginning only yesterday, two major stockbrokers also reduced the cost of most of their trades to ZERO. And so, an occasional extra trade that isn’t necessary is now almost a moot point in performance or cost.
The compound annual rate of return (CAGR) for this model of 29.04 percent has been well beyond that of all 30,000 mutual funds, all private equity portfolios, and all other portfolios that I know about. None of them is even a close contender. This model is about equal in difficulty to use as a GPS unit in your car. The amount of technology behind each of them, however, is huge. My model is the outgrowth of about 100 of the best minds in the fields of finance, economics, mathematics, artificial intelligence, and model building—who have garnered a total of 6 Nobel Prizes. The view from standing on their shoulders is simply magnificent! And so are the results.
Stay tuned to this space to learn when this model’s results it will be available, how to use them, and what it will cost to do so. For now, you are standing on the cutting edge of today’s technology with but a glimpse of your own financial future in hand. Opportunity usually knocks but once. This could be yours.
This article is for information only.
But as to your story, here is one that can top it. In 1993 the Walton siblings inherited $23 billion from their father, Sam Walton, who built Walmart from the ground up. Today, 26 years later they are worth about $173 billion. They increased their holdings by $150 billion by doing absolutely nothing except--they held onto their Walmart stock. Moral to their story: Choose your parents wisely.
In a recent reality series that just completed, a billionaire in disguise, was dropped in Erie, Pennsylvania with a serviceable old pickup truck and $100. He started schmoozing people right away, slept in the truck in freezing conditions, and invested part of his $100 while looking for cast-off truck tires that he could bring to a recap tire maker for money, much more than aluminum cans. He also engaged in selling St. Patrick's Day paraphernalia, renovating and flipping an old house, and an annual barbecue contest, winning a couple of first places (by picking talented local people with skill to go along with him on a dream with no pay).
The goal was to turn the $100 into a business worth $1 million in 90 days. It was much harder to do than he thought. The physical and mental stress was great, even with television cameras on him the whole time. The cameras probably brought people in, thinking they would be part of a television show… 15 minutes of fame. Anyway, on the 88th day, his barbecue restaurant wasn't finished. But on the 90th day, a local appraiser appraised the business, at $800,000. Not bad for 90 days work. Nerve-racking as it was. In one or two years, with Internet sales as yet unrealized for award-winning barbecue and beer, the business was projected to be worth 2.5 to $3 million.
Moral of the story… Go into business rather than the stock market. Just kidding.
Ron