Author Topic: Johnny Depp blown through $650 million  (Read 12000 times)

Roadrunner53

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Re: Johnny Depp blown through $650 million
« Reply #50 on: February 26, 2018, 02:29:15 PM »
Tori Spelling and Nick Cage also suffer from financial doom.

dbm

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Re: Johnny Depp blown through $650 million
« Reply #51 on: February 26, 2018, 08:56:22 PM »
There's some of that, but there's also magical thinking - that there's some great financial product out there just for rich people like them that will make them even richer.

There are, but most aren't rich enough!  Proper private equity and the like, but we are talking minimum $20M, and preferably $100M+.  The private equity us poor schmucks can buy bundled up in a fund or trust is usually the leftovers. 

There are plenty of other direct investments we can't access.   

Roadrunner53

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Re: Johnny Depp blown through $650 million
« Reply #52 on: February 27, 2018, 03:26:42 AM »
The 'little' people spend money stupidly too. With this new tax break starting in 2018 most wage earners are bringing home a larger paycheck. For some it might be $3 a week and others maybe $80 a week. How many of these people will put that money into their 401k or even their piggy bank. Most people will just spend it and never think twice about it. If it were me, I would increase my 401k to whatever that amount was. Other people will just blow it on new gadgets and crap.

nereo

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Re: Johnny Depp blown through $650 million
« Reply #53 on: February 27, 2018, 05:53:01 AM »
There's some of that, but there's also magical thinking - that there's some great financial product out there just for rich people like them that will make them even richer.

There are, but most aren't rich enough!  Proper private equity and the like, but we are talking minimum $20M, and preferably $100M+.  The private equity us poor schmucks can buy bundled up in a fund or trust is usually the leftovers. 

There are plenty of other direct investments we can't access.
I disagree. 
There are certainly hedge funds which have minimums of $500k to several million but (and this is the really important part) - they don't perform any better than all the various index funds, target retirement funds, and actively managed funds that us 'poor souls' can afford. 3-decades-or-so ago the average investor couldn't buy many stocks (or any stocks without a high-price broker); now they're all available.

what those hedge funds with the >$500k minimum do offer is hand-holding, fancy dinners and direct phone calls. These clients know their manager and they expect their manager to know them and to return their calls and to meet with them on demand at a nice restaurant to talk about 'wealth-management strategies' and 'mitigtating downslope risk,' which these guys are more than happy to do for ~1%/yr of a $1MM+ account.

jinga nation

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Re: Johnny Depp blown through $650 million
« Reply #54 on: February 27, 2018, 07:23:41 AM »
There's some of that, but there's also magical thinking - that there's some great financial product out there just for rich people like them that will make them even richer.

There are, but most aren't rich enough!  Proper private equity and the like, but we are talking minimum $20M, and preferably $100M+.  The private equity us poor schmucks can buy bundled up in a fund or trust is usually the leftovers. 

There are plenty of other direct investments we can't access.
I disagree. 
There are certainly hedge funds which have minimums of $500k to several million but (and this is the really important part) - they don't perform any better than all the various index funds, target retirement funds, and actively managed funds that us 'poor souls' can afford. 3-decades-or-so ago the average investor couldn't buy many stocks (or any stocks without a high-price broker); now they're all available.

what those hedge funds with the >$500k minimum do offer is hand-holding, fancy dinners and direct phone calls. These clients know their manager and they expect their manager to know them and to return their calls and to meet with them on demand at a nice restaurant to talk about 'wealth-management strategies' and 'mitigtating downslope risk,' which these guys are more than happy to do for ~1%/yr of a $1MM+ account.

PSA:
https://www.atominvest.co/
Invest in private equity, venture capital, private debt, real estate, hedge funds, with smaller investment sizes of $100,000+.

One of the founding three is my relative. Very sharp and smart chap. But I don't mix business with family. And I stay clear of unregulated investment products, sticking to low ER index and mutual funds/ETFs.

I'm going to be meeting him in April at a wedding, I bet the whole extended family will be fawning over his startup. I'm planning on talking to him to find out the high returns that he can deliver for the long-term. BS detector will be turned up to 11.

My wallet will be locked in the room safe. I don't sign without ze wife and I tooth-combing documents and discussing and 'asking too many irritating questions'.

nereo

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Re: Johnny Depp blown through $650 million
« Reply #55 on: February 27, 2018, 07:33:49 AM »
There's some of that, but there's also magical thinking - that there's some great financial product out there just for rich people like them that will make them even richer.

There are, but most aren't rich enough!  Proper private equity and the like, but we are talking minimum $20M, and preferably $100M+.  The private equity us poor schmucks can buy bundled up in a fund or trust is usually the leftovers. 

There are plenty of other direct investments we can't access.
I disagree. 
There are certainly hedge funds which have minimums of $500k to several million but (and this is the really important part) - they don't perform any better than all the various index funds, target retirement funds, and actively managed funds that us 'poor souls' can afford. 3-decades-or-so ago the average investor couldn't buy many stocks (or any stocks without a high-price broker); now they're all available.

what those hedge funds with the >$500k minimum do offer is hand-holding, fancy dinners and direct phone calls. These clients know their manager and they expect their manager to know them and to return their calls and to meet with them on demand at a nice restaurant to talk about 'wealth-management strategies' and 'mitigtating downslope risk,' which these guys are more than happy to do for ~1%/yr of a $1MM+ account.

PSA:
https://www.atominvest.co/
Invest in private equity, venture capital, private debt, real estate, hedge funds, with smaller investment sizes of $100,000+.
...
I'm not doubting that there are funds which have investment sizes far beyond us 'normal people' (see above). 
I'm objecting to the idea that these funds offer investment opportunities that are somehow unavailable to your average middle-class investor, albeit with another company/fund/package or series of ETFs.

I bring this up because I think it is a pervasive myth that rich people somehow have access to investments which somehow give out-sized returns and lower risk.  I have yet to see any hard data showing this is the case, and I have two close friends who work for funds with account minimums at $250k.

In sum my position is this: People with $5MM to invest do not have 'better' investment options than someone with $50k, they just have more full-service funds available.

Just Joe

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Re: Johnny Depp blown through $650 million
« Reply #56 on: February 27, 2018, 07:36:20 AM »
$650M spent. WOW. just wow. I get lightheaded just buying a used car.

jinga nation

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Re: Johnny Depp blown through $650 million
« Reply #57 on: February 27, 2018, 08:19:37 AM »
There's some of that, but there's also magical thinking - that there's some great financial product out there just for rich people like them that will make them even richer.

There are, but most aren't rich enough!  Proper private equity and the like, but we are talking minimum $20M, and preferably $100M+.  The private equity us poor schmucks can buy bundled up in a fund or trust is usually the leftovers. 

There are plenty of other direct investments we can't access.
I disagree. 
There are certainly hedge funds which have minimums of $500k to several million but (and this is the really important part) - they don't perform any better than all the various index funds, target retirement funds, and actively managed funds that us 'poor souls' can afford. 3-decades-or-so ago the average investor couldn't buy many stocks (or any stocks without a high-price broker); now they're all available.

what those hedge funds with the >$500k minimum do offer is hand-holding, fancy dinners and direct phone calls. These clients know their manager and they expect their manager to know them and to return their calls and to meet with them on demand at a nice restaurant to talk about 'wealth-management strategies' and 'mitigtating downslope risk,' which these guys are more than happy to do for ~1%/yr of a $1MM+ account.

PSA:
https://www.atominvest.co/
Invest in private equity, venture capital, private debt, real estate, hedge funds, with smaller investment sizes of $100,000+.
...
I'm not doubting that there are funds which have investment sizes far beyond us 'normal people' (see above). 
I'm objecting to the idea that these funds offer investment opportunities that are somehow unavailable to your average middle-class investor, albeit with another company/fund/package or series of ETFs.

I bring this up because I think it is a pervasive myth that rich people somehow have access to investments which somehow give out-sized returns and lower risk.  I have yet to see any hard data showing this is the case, and I have two close friends who work for funds with account minimums at $250k.

In sum my position is this: People with $5MM to invest do not have 'better' investment options than someone with $50k, they just have more full-service funds available.

Correct.

One branch of my dad's extended family is very rich through hard work etc. But they secured a windfall a few years back when a foreign company bought the business. As a result each family member has net worth from USD 5-20M. Thus they opened a family investment office in the UAE (not where they live), run by one of the sons, a Harvard-MBA-grad. That's his first job out of grad school. I asked him why he turned down offers from Wall Street, he said he had to manage this windfall. (My guess is that silver-spoon boy doesn't have the cojones to work for not-family.)

There's a pervasive thought that rich families require a family investment office to handle this money, as it has to be 'actively managed' otherwise it may run away. Fucking green soldiers can mutiny, damn bastards! "When there's a lot of money, we need to invest in hedge funds and private equity and IPOs and exotic investments as we're at a higher <asshole> level."

Meanwhile, I have 2 friends who work at a local family investment office which oversees over USD 100M invested. One friend had some issues with database reports, excel, etc. She came over with her laptop, and while helping her, I got to see what they invest in (didn't get to see names of investors). It was a mix of mostly active mutual funds, blue chip stocks, and Treasury Notes/Bills/Bonds.

Let the myth propagate like a STD. You can't change the minds of people who have more money than you. And one can get full service with VG Flagship status or the Schwab/otherfundco equivalent.

It will be interesting to meet atominvest-cousin and familyoffice-cousin in a couple of months. There will be some drinking-and-bragging-sessions. Let the good times roll...

nereo

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Re: Johnny Depp blown through $650 million
« Reply #58 on: February 27, 2018, 08:32:43 AM »
Quote
Let the myth propagate like a STD. You can't change the minds of people who have more money than you. And one can get full service with VG Flagship status or the Schwab/otherfundco equivalent.

Oh, I don't expect to change the minds of the uber-rich; there's a very dedicated and well-funded industry designed to convince them that they must have their millions and billions of little green soldiers marshalled by a suit-wearing Ivy grad.

I go on these mini-tirades in hopes that at will enlighten and inform a few of the 'little guys' who might have found this forum through googling and who probably have heard these pervasive myths. I don't cry tears for some celeb who's mis-managed his or her money to the point where they wind up back in the middle class (even "broke" these SOBs are seldom worse financially than us middle-class folk). I just seek to dispel the notion that the markets are rigged and only the rich can invest and you need a wealth-asset-manager to navigate you to prosperity (an actual line I pulled from a brokerage firm's glossy ad).

For any of those people listening:  1) you can self-manage your investments (it's not that hard), 2) the very wealthy do not get better returns on their investments and 3) its possible to invest in just about any market sector cheaply and efficiently.
::stepping off soapbox now::

SnackDog

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Re: Johnny Depp blown through $650 million
« Reply #59 on: February 27, 2018, 08:49:15 AM »
...
In sum my position is this: People with $5MM to invest do not have 'better' investment options than someone with $50k, they just have more full-service funds available.

I think there are examples to the contrary. One is the investment Warren Buffet made in Heinz under preferred terms which your average Heinz investor would not be able to access.

nereo

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Re: Johnny Depp blown through $650 million
« Reply #60 on: February 27, 2018, 08:58:20 AM »
...
In sum my position is this: People with $5MM to invest do not have 'better' investment options than someone with $50k, they just have more full-service funds available.

I think there are examples to the contrary. One is the investment Warren Buffet made in Heinz under preferred terms which your average Heinz investor would not be able to access.
All due respect, examples sans analysis aren't data, and buying whole companies isn't the same as investing in funds with huge minimum balance requirements.  If your argument is that the uber-rich can buy up small privately held companies, fine - but that often doesn't turn out so well. Just look at how many rich saps have been convinced to invest in some new business only to have it go belly up.
Buffet is the marque investor of this era - but even here one can just buy Berkshire shares. I'm certain Buffet himself would argue that's a better use of $5K-50MM than trying to go out and do what he does.

BlueHouse

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Re: Johnny Depp blown through $650 million
« Reply #61 on: March 08, 2018, 09:34:15 PM »


Why do these people think they have to buy 14 mansions that require a full staff to maintain them, and all the fancy jewels, cars, yachts, jets, hanger on-ers, etc.

Remember that lady who won the lottery but was still collecting welfare and food stamps?  Her answer was:  I have two houses!  That's expensive!

AnnaGrowsAMustache

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Re: Johnny Depp blown through $650 million
« Reply #62 on: March 09, 2018, 01:42:27 AM »
Good example of easy-come-easy-go. You see it in lots of industries that end up giving people lump sums. Commercial fishing is a good one - even though they work very hard for it, giving people large lump sum payments leads to them thinking that they can always just do one more run/job/movie. No need to economise.