Author Topic: 'An Optometrist Who Beat The Odds To Become A Billionaire'  (Read 10759 times)

Parsad

  • Administrator
  • Hero Member
  • *****
  • Posts: 8475
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #10 on: February 19, 2019, 02:16:26 PM »
So, I have done the math with the following assumptions: (1) He had $50M in 1981 and (2) added $8M per year to the account since 1981.

The resulting CAGR is 7.4%, compounded over 38 years to get $2.3B.

You guys are jackasses!   ;D  Here you have a man who was an optometrist, built up a company and then took the cash flow and invested it over time.  It doesn't really matter what his results were like...he could be conservative or he could have shot the lights out.  The main point is that he took a career and became entrepeneurial, and then through long-term investments built enormous wealth...that's it! 

Who give a rat's ass what CAGR he was compounding at?  He wasn't going for the title of greatest investor of all time...just that people can achieve tremendous success by doing some simple things...even if you only achieve 1/100th of what he did in terms of wealth, you would be well off copying his behavior.  Cheers!
No man is a failure who has friends!


nickenumbers

  • Full Member
  • ***
  • Posts: 200
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #11 on: February 19, 2019, 02:35:55 PM »
Amen!   Parsad and I are OUT!


The fastest Cheetah still waits for the lame baby antelope.  ..patience..

stahleyp

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 2772
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #12 on: February 19, 2019, 02:52:22 PM »
So, I have done the math with the following assumptions: (1) He had $50M in 1981 and (2) added $8M per year to the account since 1981.

The resulting CAGR is 7.4%, compounded over 38 years to get $2.3B.

You guys are jackasses!   ;D  Here you have a man who was an optometrist, built up a company and then took the cash flow and invested it over time.  It doesn't really matter what his results were like...he could be conservative or he could have shot the lights out.  The main point is that he took a career and became entrepeneurial, and then through long-term investments built enormous wealth...that's it! 

Who give a rat's ass what CAGR he was compounding at?  He wasn't going for the title of greatest investor of all time...just that people can achieve tremendous success by doing some simple things...even if you only achieve 1/100th of what he did in terms of wealth, you would be well off copying his behavior.  Cheers!

Well, Sanj, according to the article he is "the greatest investor you've never heard of." ;) Usually that implies market beating returns. I'll wager that he would probably have been just as well off (if not better) by indexing. I'll admit, having $50 million plus in 1981 during that terrible economy in his early 40s is really quite impressive.  He was probably doing better than Buffett at each of their 42 years.

Like i said, if I end up as wealthy as him (granted, that's a very, very big if) I'll be happy with my winnings.
Paul

Orchard

  • Newbie
  • *
  • Posts: 46
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #13 on: February 19, 2019, 02:58:13 PM »
So, I have done the math with the following assumptions: (1) He had $50M in 1981 and (2) added $8M per year to the account since 1981.

The resulting CAGR is 7.4%, compounded over 38 years to get $2.3B.
Why exclude BPI?

The guy got to $2.3B entirely through investing. Why would you ignore the investment that started it all? Because BPI doesn't have a ticker it doesn't count?

Clearly his major coup was getting his first millions not what happened afterwards although Heico and the other investments are still great.

Munger_Disciple

  • Lifetime Member
  • Sr. Member
  • *****
  • Posts: 454
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #14 on: February 19, 2019, 03:04:11 PM »


Quote
Who give a rat's ass what CAGR he was compounding at?

Sanjeev,

I am going to ignore the jackasses comment. But seriously no one is arguing the guy is a great entrepreneur & all. My issue is with the uncritical reporting. Just wanted to show that the reporter hasn't really done her "homework" when she was using phrases like greatest investor etc.

MD

Munger_Disciple

  • Lifetime Member
  • Sr. Member
  • *****
  • Posts: 454
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #15 on: February 19, 2019, 03:07:49 PM »
Quote
Why exclude BPI?

You have to use something as a starting point. Otherwise return would be infinite because he like many on this board started with 0.

Spekulatius

  • Hero Member
  • *****
  • Posts: 2660
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #16 on: February 19, 2019, 03:30:04 PM »
The article is more about the wonders of compounding than anything.
To be a realist, one has to believe in miracles.

CorpRaider

  • Hero Member
  • *****
  • Posts: 2098
    • The Corpraider
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #17 on: February 19, 2019, 04:59:55 PM »
These are always cool and all, and I certainly don't mind the reading, but I've yet to see a real one that the average Joe can look at and dream about. Beating the odds would be having a $10M income, regardless of what he does with it. Show me a guy would turned a $50-$100K salary into mid 7 or 8 figures. Thats impressive. Its like all those "Guy With 200K In Student Loans Got Debt Free" stories. Then you find out he and his wife made $15K a month a lived in a 600 sq ft house in Pennsylvania or with their parents...

Sounds like the ones about the janitor or the IRS mid level auditor will scratch your itch.

Liberty

  • Lifetime Member
  • Hero Member
  • *****
  • Posts: 11067
  • twitter.com/libertyRPF
    • twitter.com/libertyRPF
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #18 on: February 19, 2019, 06:06:01 PM »
Parsad is right.

Too many of you try way too hard to miss the point of these things just to complain and whine.  I don't care that the journalist put all kinds of flourishes on it and called him whatever. This isn't the important part; can't you tell what's important and what isn't? Look at the life and the process and the principles. And it's possible to appreciate what someone else has done without caring that not everybody can do the same or whatever. Others successes never being good enough and pure enough and done the way you'd want is disguised jealousy... It's not supposed to be easy to replicate, it's about celebrating someone's success.

And trying to create some math to show it's not that impressive. Give me a break. There are lots of entrepreneurs making a few milions a year that will never have a net worth much above a few tens of millions. Trump inherited hundreds of millions and I'm pretty sure this guy is richer than him (esp if you remove the fuzzy brand value) starting from zero. It's very impressive. Most here have trouble holding a stock more than a couple years or without selling a bunch if it doubles...
« Last Edit: February 19, 2019, 06:22:17 PM by Liberty »
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen

bizaro86

  • Hero Member
  • *****
  • Posts: 983
Re: 'An Optometrist Who Beat The Odds To Become A Billionaire'
« Reply #19 on: February 19, 2019, 06:55:40 PM »
Most here have trouble holding a stock more than a couple years or without selling a bunch if it doubles...

That's the part I find the most impressive. I've had a couple of doubles where I sold the vast majority of  my position after a double, and then watched it double again (or twice, in one case) on small positions. I'm trying very hard to not do that anymore on quality stocks...