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Time for a story

Posted on 3/18/20 at 2:01 pm
Posted by Zach
Gizmonic Institute
Member since May 2005
112410 posts
Posted on 3/18/20 at 2:01 pm
I've never told this one on the Internet or IRL. But it's true. When I was a young boy I had an elderly relative I shall call Uncle Raul. He was the only person in our extended family who was wealthy. When I asked him about his job he said 'I owned a jewelry store.'
I had no idea you could make that much in a jewelry store.
When I was a little older and he was deceased I learned the truth.
During the Great Depression he ran a pawn shop. In order to eat, people came to him with their valuables. IE, if they had an antique carved oak table handed down through generations that was worth $500 he would give them $20. They would take it.
He would then contact dealers in larger cities who knew the value was $500 and he sold it to them for $300. He made $280 off the deal.
By the time the Great Depression was over he was rich enough to retire.
The lesson: During very tough economic times, the intelligent do very very well. The stupid do not.
This post was edited on 3/18/20 at 2:24 pm
Posted by LuckyTiger
Someone's Alter
Member since Dec 2008
45163 posts
Posted on 3/18/20 at 2:05 pm to
What if you invested most of your money in stocks?

Look at this as a learning opportunity.
Posted by jimmy the leg
Member since Aug 2007
34008 posts
Posted on 3/18/20 at 2:08 pm to
quote:

The lesson: During very tough economic times, the intelligent do very very well. The stupid do not.


$300 - $20 = $280, not $180.
This post was edited on 3/18/20 at 2:09 pm
Posted by LeroooyJenkins
Member since Nov 2017
1058 posts
Posted on 3/18/20 at 2:09 pm to
quote:

worth $500 he would give them $20




quote:

the value was $500 and he sold it to them for $300. He made $180


quote:

the intelligent do very very well. The stupid do not.


Indeed
Posted by SavageOrangeJug
Member since Oct 2005
19758 posts
Posted on 3/18/20 at 2:11 pm to
quote:

Zach
Maybe story time involving math isn't a good look.
Posted by Bulldogblitz
In my house
Member since Dec 2018
26774 posts
Posted on 3/18/20 at 2:14 pm to
quote:

Maybe story time involving math isn't a good look. ?





Especially when the story is to dog people for their lack of intelligence
Posted by Chad504boy
4 posts
Member since Feb 2005
166135 posts
Posted on 3/18/20 at 2:14 pm to
shipping by carriage was $100 back in the days.
Posted by Jack Daniel
In the bottle
Member since Feb 2013
25412 posts
Posted on 3/18/20 at 2:16 pm to
Well... we see why uncle Raul was the only wealthy person in OP’s family
Posted by Barneyrb
NELA
Member since May 2016
5080 posts
Posted on 3/18/20 at 2:16 pm to
I'm thinking he planned it that way
Posted by The Baker
This is fine.
Member since Dec 2011
16160 posts
Posted on 3/18/20 at 2:16 pm to
(no message)
This post was edited on 1/10/21 at 3:12 pm
Posted by Displaced
Member since Dec 2011
32702 posts
Posted on 3/18/20 at 2:19 pm to
quote:

he would give them $20. They would take it.
He would then contact dealers in larger cities who knew the value was $500 and he sold it to them for $300. He made $180 off the deal.

Solid math.
Posted by chity
Chicago, Il
Member since Dec 2008
6074 posts
Posted on 3/18/20 at 2:19 pm to
If Bloomberg had only given every American an equal portion of what he spent on his campaign, we would all be millionaires.
Posted by PanhandleTigah
Florida Freedom Zone
Member since May 2008
9405 posts
Posted on 3/18/20 at 2:19 pm to
quote:

he would give them $20. They would take it.
He would then contact dealers in larger cities who knew the value was $500 and he sold it to them for $300. He made $180 off the deal.
Using Mara Gay/Brian Williams math
Posted by cajunangelle
Member since Oct 2012
146546 posts
Posted on 3/18/20 at 2:21 pm to
your story is the truth.
Posted by RollTide4Ever
Nashville
Member since Nov 2006
18302 posts
Posted on 3/18/20 at 2:24 pm to
Read up on AG Gaston. He used to buy salary IOUs from teachers during the Great Depression for a fraction of the value and held onto them until it was time to cash in.

Having savings in tough times can be lucrative, but your uncle provided a service as well. Those folks needed the money asap, and he gave it to them. Nothing smart/dumb about it.
Posted by Zach
Gizmonic Institute
Member since May 2005
112410 posts
Posted on 3/18/20 at 2:25 pm to
quote:

$300 - $20 = $280, not $180.


I'm sorry. The 1 is right next to the 2.
Posted by Zach
Gizmonic Institute
Member since May 2005
112410 posts
Posted on 3/18/20 at 2:32 pm to
quote:

Read up on AG Gaston. He used to buy salary IOUs from teachers during the Great Depression for a fraction of the value and held onto them until it was time to cash in.


I read some articles during the Soc Sec option debate (when Bush, Jr. wanted 4% diverted to stocks).
One econ prof showed that if you started investing money at age 30 just before the Great Depression in safe blue chips and then took the hit and waited until you retired 30 years later you would collect 20x more per month for life compared to the same amount of money SS takes from you and gives you back at retirement.

Long term stocks are not a gamble. Relying on the govt to take care of you is a gamble.
This post was edited on 3/18/20 at 2:33 pm
Posted by Heyes
Baton. Rouge
Member since Jul 2013
554 posts
Posted on 3/18/20 at 2:50 pm to
If you invested most of your money in stocks in 1929... if your company wasnt totally wiped out and bankrupt , you did eventually get even .... in ..... 1969
This post was edited on 3/18/20 at 2:56 pm
Posted by Sidicous
Middle of Nowhere
Member since Aug 2015
17127 posts
Posted on 3/18/20 at 3:21 pm to
quote:


What if you invested most of your money in stocks?

Then I hope your family has lots of generational antique tables.
Posted by Caplewood
Atlanta
Member since Jun 2010
39156 posts
Posted on 3/18/20 at 3:30 pm to
This is very on brand
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