Sunday, November 14, 2010

Other People's Money

Most people are suckers.
Most people only wish to have all the material goods to show off to friends instead of generating any type of real wealth.
As I wrote earlier, sometimes I run nightclubs.
But the thing is, I hate running nightclubs.
Most people only call after what they were doing has failed.
But as in construction - rebuilding is more expensive than building.

As is often the case, I've been approached by a group of guys who love to floss their platinum and diamond watches and jewelery.
"I'll get you one of these.", one guy said as he looked at my old Gruen, Hamilton or Patek Phillipe watches.
(I didn't buy them, they were my grandfather's from back in the forties and fifties. MY cost; $0.00 - resale value, more than $0.00. THEIR cost; thousands - resale value, less than thousands. Why pay for something that loses value?)

My standard agreement is payment from the increase in sales.
But if the group is dumb enough to agree to such terms I just decline the offer.
An increase in sales is not the same as an increase in profits.
Anyone not knowing this is too dumb to succeed.
After someone points out that they do understand this, we then negotiate a percentage of the increase in profits which I will receive.

While I'm working on my humility - I must be good at what I do.
Most people who open new clubs offer to give me a percentage of their business (usually 30%) if I reach my sales and profit goals.
I then sell this percentage back to them (If I choose) or sell this percentage to another investor.
People are suckers.
Most are so anxious to be thought of as being cool that they will allow you to make money with their money.


DF said...

Have you been on the R&G listening and reading day by day? I call it Fame over Money as most people really want to have the trappings of the rich than concentrate on what creates so much money to trick it off on excess.

It comes down to what type of man you are when you help people out. You could help them without knowing and still get shitted on in the end or you can take a Bullshit tax up front! I play it by ear everytime but what motivates Men is the key to understanding money. Most people want to be seen as something and if you decide to accumulate instead of play their game it only allows you to be the Silent King!

Granite countertops, stainless steel appliances, massaging showers and excess usually falls to the person in foreclosure who bought the whole house for 1/10 of what it costs.

Now that we know what they want we might as well run the record company and take home billions while giving Madonna Millions of fans and fame.

uglyblackjohn said...

Yeah... I know.
But sometimes I feel bad because I think I'm taking advantage of those who lacked knowledge or good judgement.
Sometimes I feel like those Wall St. guys selling REITs, or ReFi's to unknowing suckers.

DF said...

Most of the time a Sucker never finds out they are a Sucker. I'm sure I've been a Sucker in my lifetime the solution is I didn't remain that naive.

In the meantime accumulate so you can dole it out as you see fit to help the naive.