What to do with 30 Million?

[MAJNOON]

Hello all,
It's like this, a friend of mine recently inherited the equivalent of 30 million USD. I don't want to get into the specific details because it will take forever. Anyway, he's an idiot when it comes to financial matters, and he was telling me how his goal is to be a billionaire within ten years. I told him it would be difficult, then I got to thinking that it may not be impossible with the right investment strategy and alot of luck.
So just for fun, how would you guys and girls invest 30 Million in order to become a Billionaire within a decade?

 

[buffer1]

Hello all,
It's like this, a friend of mine recently inherited the equivalent of 30 million USD. I don't want to get into the specific details because it will take forever. Anyway, he's an idiot when it comes to financial matters, and he was telling me how his goal is to be a billionaire within ten years. I told him it would be difficult, then I got to thinking that it may not be impossible with the right investment strategy and alot of luck.
So just for fun, how would you guys and girls invest 30 Million in order to become a Billionaire within a decade?

well if your friend is an idiot with money,he will never become a billionaire in ten years,he'll be lucky if he,s still a millionaire

 

[bran987]

Hello all,
It's like this, a friend of mine recently inherited the equivalent of 30 million USD. I don't want to get into the specific details because it will take forever. Anyway, he's an idiot when it comes to financial matters, and he was telling me how his goal is to be a billionaire within ten years. I told him it would be difficult, then I got to thinking that it may not be impossible with the right investment strategy and alot of luck.
So just for fun, how would you guys and girls invest 30 Million in order to become a Billionaire within a decade?

Well, MAJNOON

Just let your buddy know he'd have to be most likely........ one of the most brilliant investors in the history of the world. If he's comfortable with that, good.

To me, from what I can tell, to turn $30 million into a billion dollars inside of 10 years, he'll have to compound his money at an annual growth rate of 42%. Move over Buffett, move over Lampert, here comes MANJOON'S buddy.

Now don't get me wrong. Cuban turned it outta nothin'. He'll have to take high risk to earn those high returns. The question is, is he that smart? I'd turn the money over to Goldman or Morgan Stanley if the answer is no. If he thinks he's smart enough, take $2 million and experiment.

But this is a bullshit post anyway IMO. So do whatever.

 

[MAJNOON]

OK, fine, make it 20 years, that's not the point. what I want to know is how would you diversify your investments in order to become super-wealthy in a relatively short time.
And if it's such a Bullshit thread why did you waste your time?
This is just for fun people, you get 30 mil., what do you do with it?

 

[bran987]

OK, fine, make it 20 years, that's not the point. what I want to know is how would you diversify your investments in order to become super-wealthy in a relatively short time.
And if it's such a Bullshit thread why did you waste your time?
This is just for fun people, you get 30 mil., what do you do with it?

Ah well, it's fun to talk about anyway.

$30 million is enough to go to the top wealth managers in the world. They'll diversify you into exotic investments, art, etc. They have relationships with hedge fund managers as well. To invest in a hedge fund you have to be an "Accredited" investor, meaning a net worth of $1 million or $250,000 of annual income I believe, so he'll qualify for that. Hedge funds have performed well as of late, but managers of these things matter much more than managers of a mutual fund. Most mutual fund managers are just trying to stay as close to the S&P as possible so they don't lose their jobs, whereas hedge fund managers will attempt much more.

That's also enough money to purchase a prime piece of land in a major metropolitan area (really, $10 million is enough for him, don't put all your eggs in one basket, ever), which he could then contribute as equity in a joint venture with a real estate developer. As repayment for tying up his equity he would most likely receive a preferred return of up to 12% on the money in the land, plus a back end percentage of the profits from the development. That repayment could come in the form of a buyout or an ongoing interest in the rent/income from the completed building. You have to know what you're doing, but that's a way to double the money every 2-3 years. Once you get to a couple hundred million though, you have the same problem in that it's hard to find enough deals on a consistent basis to meet such demanding investment criterion.

Without being a professional in these sorts of things, I don't see any reason for him to take that much risk. Even with a modest return of 10% and a reasonable spending pattern, he will become very wealthy over a period of 20 years.

IMO, the difference in having $200 million and a billion is simply a matter of ego!

 

[bran987]

I just had one more thought. If it were me personally, right now, with the apartment market coming back, I would be buying apartments ~20 years old, 300 unit projects or so that could be brought up to date, repainted, refinish tubs install new appliances, change the countertrops, add pretty landscaping etc., increase rent (which the trend is in your favor as the market is coming back and you've improved the property) and then sell them to the apartment REIT's that are so flush with cash, looking for nice properties.

the apartment market has been beaten down for 10 years in many parts of the country, you could make a killing in the next 5 years doing that.

 

[Megalomaniac]

This is and easy one. Just give me 29 million and let him enjoy the 1 million for the next ten. In ten years I promise I'll give him a billion.


















BTW if this works than I'll have a huge EF party the night he signs the check.

 

[Synpax]

PM me and I'll give you my phone number. I need about 2 mil for my current project. And no, it is not related to real estate, the internet, gold or some other 'transactional' wealth gaining nonsense.

Essentially, I have come up with a new and very lucrative application for a very expensive piece of equipment. Each of these 'units' costs a couple of million but I have been able to access down-time on them at a very low costs in this area.

I need the money so I can put myself full-time into this business, pay for some very advanced programing to streamline and automate the data collected from this technology, and to bring a few academics on board. The client will mostly be very wealthy firms in a certain sector of the US and international market and they will each see the need to associate with my technology as being completely necessary - kind of like having a nuclear weapon.

The goal will be to IPO it though I suspect private funding will allow me to retain greater control while rewarding your friend for investing and avoiding the TOTALLY assinine SEC issues.

 

[manny78]

30 millions ? I'd put 10 into real estate (which is growing at a stratospheric rate here), 10 millions into government/banks, bonds, 5 into some kind of hedge fund and 5 millions for myself. Your friend wouldnt be billionaire but safe for the rest of his life.

 

[ZKaudio]

a lucky hedge fund has a chance of pulling 40%... unfortunately probably has a higher chance of pulling -40%

 

[QCION3]

Honestly, if I had the money, I would put it in a CDs and live nicely off the interest. You wouldnt have a billion dollars but you would be more than comfortable the rest of your life

 

[ZKaudio]

or get a good manager to handle it for you and go have fun... that's just enough to not have to worry about money anymore.

 

[Cuthbert]

If I had that I'd probably invest it in gov't bonds or something and live off the 900k a year in interest.

Trying to turn it into a billion is a great way to make yourself broke.

 

[flex229]

If I had 30 million, I would put half into a Vanguard index fund as soon as the market pulled back a little ways. I would then put 5 million into Fidelity Contrafund. Another 5 million I would maybe spend on something like some class A shares of Berkshire Hathaway. I would put put the remaining 5 million into a higher-interest bearing money market fund, and I would live off that while paying off my debts like my mortgage and credit cards.

 

[ZKaudio]

If he's interested in going into film financing/dist. pm me...

 

[MAJNOON]

What type of films dude?

 

[NYBodyguard]

lol im scared your friend got one of these nigerian emails and is getting ahead of himself

 

[ZKaudio]

What type of films dude?

Genre movies... teen actors.

 

[kunta]

Genre movies... teen actors.

porn?

 

[novamanms]

He can payoff my goddamn college loans, for starters.

 

[ZKaudio]

porn?

no.

 

[XOXOXO]

how to make a crapload of money...honestly the easiest way i can think of is to go to Louisiana and buy up as much damaged property as possible and sit and wait till the real estate value boosts back up...people will be willing to sell for FAR under market value, and after the rebuilding of New Orleans a pretty penny can be made. I recently saw this happen in the Cayman Islands, where Hurricane Ivan WRECKED the island. investors came in and bought a ton of damaged property for pennies on the dollar from desperate owners who just left the island, now those people are making a KILLING.

 

[ZKaudio]

how to make a crapload of money...honestly the easiest way i can think of is to go to Louisiana and buy up as much damaged property as possible and sit and wait till the real estate value boosts back up...people will be willing to sell for FAR under market value, and after the rebuilding of New Orleans a pretty penny can be made. I recently saw this happen in the Cayman Islands, where Hurricane Ivan WRECKED the island. investors came in and bought a ton of damaged property for pennies on the dollar from desperate owners who just left the island, now those people are making a KILLING.

watch out for some imminent domain ownage.

 

[XOXOXO]

watch out for some imminent domain ownage.

good heads up, i know that LA is trying to shake things up and make the city a better place to live. there was no prob with that in cayman though, no emminent domain laws.

R

 

[xannax]

What is your friend willing to lose? Hell we can all swing for the fences with $30mil and snowball it to a $1bil (probably not in the 10 year but 15 to 20 year is possible) if we could afford a $30 mil hickey.

I personally would find a 2/1 to 4/1 risk in the “shale” play in the central US. If you get in early enough you do not need to drill a single well to make serious cash. Gas and oil prices are not going to decline in the immediate future. There will be a boom in the US exploration for the next 8 years for sure. Ride your wave of choosing i.e. major oil stocks; drilling companies stocks, services companies; steel companies stock will be inclining (not expediently to meet the 1 bill mark but the is just few baskets to lay an egg in)
Especially if Iran demands to have their glow in the dark toys.

 

[MAJNOON]

Update;

Being the simple fucker that he is he has decided to give it all to UBS and let them manage it. Not what I would have done but oh well.

 

[ZKaudio]

^ he prob coulda done better but he's stepping in the right direction...

 

[patricktschafer]

He could make 12%-20% on his money investing in mortgage notes. I can help him in that regard. Very safe investment. Good Luck

 

[bran987]

Update;

Being the simple fucker that he is he has decided to give it all to UBS and let them manage it. Not what I would have done but oh well.

my friend just got a summer associate investment banking job at UBS in NYC. I guess your friend gave it to UBS Financial Services, I think that's their private wealth arm.

 

[matt909]

What to do with 30 mil?

Well for starters, he better think about how his life is going to be adversly effected. Mo' money Mo' problems. If he is not used to living this life style it is very easy to squander away millions on BS and a growing ego supported by every letch in the world. He should form his crew, his closest friends to help him keep checked into reality. People that were there before he had wealth, people he can trust. These people will become his most valuable asset over time. If he is married, he better seek legal advise because any wrong action and old wifey becomes new problem. This is not for sure of coarse but he should always be thinking of exit strategies that diversify his risk from now on.

This is the funny thing about wealth. When you don't have it you can handle a lot of rick and when you have it you have to think about decreasing your risk to the least acceptable level. I say least acceptable because, living you are prone to risk at all times, but one must now become very causious to only handle risk situations you are ok with if all fails.

Now on the positive side

Your Friend. Your friend needs to be wise. What life does he want to live. What are his goals? He needs to think about this before he dives into any business venture. May people had some great suggestions on this thread topic, but he needs to think about what will drive him crazy and what will drive him to feel successful.

Bran suggested real estate and specifically apartments, as far as real estate goes I could not agree with him more! The rental industry has been beat down and is ready for an up swing, more importantly housing has increased in value at such a dramatic rate that it has put off many buyers, thus forcing them to rent untill the value of thier dollar increases enough to get what is acceptable living for them. I think that Bran would agree, that he is not talking about buying shacks here but units in areas with growing industry, population and educated workforce with moderate to high dispossible incomes.
Additionally, Reit's like to buy newly improved assets and with the liquidity that our friend has he can finance such situations without putting a major rinkle in his lifestyle.

Now last but not least...

Our friend must think about the team he needs to build to secure his wealth and make it grow. If he were to do such a move as written about above...he would want to form a strong management team. He would also want to form a solid team to handle Legal (personal and financial), Acountant ( Someone very trustworthy, that has a high reputation), establish a firm Banking relationship, and a Consulier or Cousel, someone that can help him form logical decissions for his most important matters. Generally, this should be someone that he feels he can trust and has a high respect for and he should pay this person for thier time.

I know that this is probably not the answer that you were looking for, but "every oportunity that looks good to ya, ain't always good for ya!"
First things first heshould take sometime to reflect on who he wants to be because at this point he has the gift of choice.

Thanks for the openended thread. I know that I had fun responding to it!


On another note, Bran I would like to talk with you about development and real estate please email me.

 

[Razorguns]

la real estate.

the population is BOOMING (i wonder why) and people fight with blood to get land and properties.

Developers are stuck building nice home next to walmart and selling for $1 mill each.

tell him to start educating himself and start aligning himself with educated investors who do this every day. If he plays dumb - people will notice it - and play him like a violin.

In whcih case i suggest a nice expensive wealth manager and invest in some funds, securities. The proceeds of which, he can live off of comfortably every year.

And i hoie he gives u somethign for all this research you're doing for him.

 

[manny78]

Update;

Being the simple fucker that he is he has decided to give it all to UBS and let them manage it. Not what I would have done but oh well.

it's a right decision for te moment. It gives him time to learn more about potential ways to invest, market and get some education.

 

[02gixxersix]

30 millions ? I'd put 10 into real estate (which is growing at a stratospheric rate here), 10 millions into government/banks, bonds, 5 into some kind of hedge fund and 5 millions for myself. Your friend wouldnt be billionaire but safe for the rest of his life.

That's very close to what i would do. I'd give some to charity too though cause otherwise I would jsut feel guilty with all that free money. I'd probably put more like 5 million in government bonds just for security. Take 2 million and literally lock it in a safe in my house. Probably the same in real estate but not just as an investment, I would want vacation homes. I would spend 5 million and give 5 million to charity and with the other 3 I would play aound in the stock market. I would not however try to make a billion dollars in ten year because you are bound to fail, and would probably end up with nothing but a bunch of debt that you can no longer afford to pay.

 

[anabolic12]

Edit

 

[Sexy-boy]

I like this question. If it were me, i would get heavily in smart real estate tranactions and also sportsbetting. From there, you could grow that money like crazy. The ricker you are , the more easily it is to get more money.

He should also look at starting some kind of business with something he is really interesting in and knows about. If he's the construction type, look at building homes. He has the head start on all the compeition.

He should be reading, reading, and reading even more to gain more knowledge. He should also set something aisde though in a conservative mutual fund just in case something goes terribly wrong that way he'll never have to work again anyway.

 

[Creepusmaximus]

he made the right move with UBS. That's to much money to play with if you don't know what your doing.

 

[CaddysNJuice]

Tell him to invest 30 million into Merek or Phizer or Johnson and Johnson, become the CEO......and become a billionaire within a decade..... Comeon. Think stock investments. Most people cant afford to invest in the high priced, high potential stocks. But with 30 mil, find the right company, and you can take it over.

 

[bran987]

Tell him to invest 30 million into Merek or Phizer or Johnson and Johnson, become the CEO......and become a billionaire within a decade..... Comeon. Think stock investments. Most people cant afford to invest in the high priced, high potential stocks. But with 30 mil, find the right company, and you can take it over.

What in God's name are you talking about? $30 million wouldn't even buy one tenth of one percent of Johnson and Johnson. JNJ is a $175 BILLION dollar company. Pfizer is a $167 BILLION dollar company. This might be the worst post... ever?

 

[MAJNOON]

Damn! this thread still going? cool.
That idea about damaged new orleans real estate sounds pretty good, I may look into it for myself

 

[get456]

in order to become super-wealthy in a relatively short time.

sitting on 30 million ISNT super wealthy?

what circles are you running in?

 

[xannax]

I know it is too late to post in this group.(no one will read it) But, I have the solution to the MAJNOON ‘s friend’s issue. I know of a 4 to1 (most drilling deals have 10 to 1 success rate) natural gas deal that has not yet gone to the public. At today’s prices if this deal is not a dry hole 100,000% returns on an initial invest is a conservative estimate.
$20 mil * 100,000% = $ 200 BILLION. So there you go from multi millionaire to multi billionaire. But, if it is a dry hole will, um you basically lost $20 mil and that is a pretty stout kick in the crouch no matter who you are. Anyway just showing that it is possible to the none believers.