Connect with us

Blog

My First Investment Towards $1 000 000

Published

on

As I wrote in my previous post Join me to my first goal of $1 000 000, I was searching for my first investment to reach my main goal of $1 000 000 in equity. I am going to invest at least 10% of my monthly income in a low risk but high yield opportunity. I have done a lot of research on stocks, commodities, index funds, and even cryptocurrencies, but that’s not what I ended up with.

// -- Discuss and ask questions in our community on Workplace.

Some of the comments in the previous post gave me some great investment ideas, like Lithium (used in batteries, that has seen an incredible growth), cryptocurrencies like Ethereum and Bitcoin, gold and especially silver (because of the gold/silver ratio), medical marijuana companies, and energy stocks (renewable tech). Since I’m based in Norway, I’ve also looked at Norwegian stocks. However, I’ve not invested in any of these ideas.

Why did I not invest in the proposed ideas?

All of the ideas are great, but they have different risk/reward ratio. And most important, my knowledge of the different suggestions are varying.

Lithium

Lithium: I could invest in Lithium or Lithium companies in Chile/Australia, but I do not know the market well enough. And one of the most important rules of investing is to know what you are investing in. Lithium has increased drastically over the last years as you can see from the graph below, but you should never invest in something that might be at their peak. Then you’ll just lose money. Lithium is a scarce resource and might see a higher price development, but I do not feel comfortable investing in Lithium at this point. And there are alternatives to Lithium batteries, and if a replacement took over, Lithium price would plunge.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

[ecko_annotated header=”Lithium Price Development” annotation=””]

[/ecko_annotated]

Cryptocurrencies

I’ve been in the cryptocurrency space since early 2013, and I’ve made some good money on Bitcoin and other cryptocurrencies. At this point, I’m totally out of cryptocurrencies based on a few factors. First off, it’s high risk. Not only can the code be vulnerable, but the exchanges are exposed to hackers that are constantly trying to drain them. I had a lot of money in Bitstamp when they were hacked in 2015, and all accounts were frozen for a while. At that point, I thought that my money was lost (you’ve heard of Mt. Gox right?). Including the high risk of investing in cryptocurrencies, you must comply with the laws in your country. In Norway we have to provide details of all investments, and what we have gained or lost during the year. This is not very hard to do, but the system is not customized for cryptocurrency trading.

Currently, I do not want to invest in cryptocurrencies due to the high risk involved. Even though some claim that a bitcoin will be worth $500 000 in a few years.

Also read: Never lose money

Gold or silver

I’m very positive about gold, and I believe gold is a safe bet. However, due to uncertainties with Donald Trump and the current market conditions (record highs), I do not feel overly comfortable in investing in gold or silver, just yet. But gold at the current prices as a long term investment won’t go wrong, at least in my opinion.

Medical marijuana companies and renewable energy stocks

I’ll make it short here; I do not know the market well enough to feel secure in investing in a medical marijuana company or a renewable energy stock. I have to do more research on these potential candidates.

My first investment

I looked at investing in an index fund. But due to the record highs, I feel insecure of whether or not an investment at this point would be a good choice. I feel a recession is lurking on the horizon and I would rather wait and invest my money in something that is more rigid. That’s why I turned my focus towards money market funds and bond funds. They tend to be less risky than investing in index funds, or stocks in general.

Also read: Trading vs. Investing

There are mainly four different options:

Federal Government Bond Funds are considered to be the safest choice, but with the lowest ROI. Next comes Municipal Bond Funds. Money Market Funds are as safe or even safer than Federal Government Bonds, but they should only be used for short term investment as they give low ROI (could be a great opportunity for storing cash during recessions). And then you have Taxable Corporate Bond Funds which has a higher risk than the other three options, but the greatest ROI opportunity.

Since Taxable Corporate Bond Funds are considered safer than index funds and stock funds, even during a recession, that has been my first investment choice. Today I made a buy order of 10 000 NOK in a Corporate Bond Fund called Deutsche Invest I Eu Hi Yld Corp LC that has a 5-star rating on Morningstar. Last year it had a 10% increase (included the fund’s fee). That means, if the fund continues in the same pace, I will have 11 000 NOK next year based on my initial investment.

[ecko_annotated header=”Deutsche Invest I Eu Hi Yld Corp LC” annotation=””]

[/ecko_annotated]

What do you think of my initial investment?

Date Investment in NOK Invested in Name Current Value
27.04.2017 10 000 Corporate Bond Fund Deutsche Invest I Eu Hi Yld Corp LC 10 000

Read more about bond funds here.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

21 Comments

21 Comments

  1. Rocla

    April 27, 2017 at 6:40 pm

    Hey, thank you for sharing this.
    I am just wondering what is the procedure you followed to buy the fund?

    • Jonas Borchgrevink

      April 27, 2017 at 7:44 pm

      Do you mean what platform I used to buy into the fund? I use a broker in Norway called Nornet.no, most countries have brokers/online platforms like that. Let me know where you are located and I can give you a few suggestions?

  2. jacobss

    April 27, 2017 at 10:36 pm

    Thanks for the honnest follow up.
    But…….
    You wanted to be a Millionair ??????.
    With this investmemt that is not going to work.
    You need to take risks for that.
    Regards
    Jack

    • Jonas Borchgrevink

      April 27, 2017 at 10:46 pm

      I will show you how I’m going to reach 1 000 000 in an upcoming blog post. Remember, interest rates are your friend.

  3. P. H. Madore

    April 28, 2017 at 7:46 pm

    I’d argue there’s a long way to go before there will be a peak in Lithium, which is used in batteries and pharmaceuticals. I don’t think it will peak until there has been significant progress in the developing world, then we can say the market is maturing as the people there buy more electronics and are prescribed lithium. So personally I find that recommendation to have been a good one and I’ve been looking into pursuing it myself.

    • Jonas Borchgrevink

      April 29, 2017 at 2:16 pm

      You might be right Paul, but I’m a bit hesitant of moving into Lithium without learning more about the potential downside..

  4. singera25

    April 29, 2017 at 3:04 pm

    How do I buy this fund from Canada?

    • Jonas Borchgrevink

      April 29, 2017 at 6:31 pm

      Hello,

      Try and see if https://www.bmoinvestorline.com or http://www.scotiabank.com/itrade/en/0,,3709,00.html has the same bond by searching for the name or LU0616839501

    • Jonas Borchgrevink

      April 29, 2017 at 6:32 pm

      Most brokerage platforms in Canada should have it. You can even call some of them and check.

      • singera25

        April 29, 2017 at 6:37 pm

        Thank you. I applied for RBC Direct investing and will have an account activated early next week. I’ll let you know if they offer that fund.

        Thanks.

        • Jonas Borchgrevink

          April 29, 2017 at 6:44 pm

          Great, do that!

  5. Lukem

    May 4, 2017 at 4:09 pm

    Hi! Love your website! Can you recommend a good place in England where I can buy stocks?

  6. altruismme

    June 11, 2017 at 2:50 am

    Where can i buy this In NZ?

    • Jonas Borchgrevink

      June 11, 2017 at 9:50 pm

      Hey, you should contact a few trading platforms that deal with Stocks, Forex, Commodities and Funds. (Not margin platforms).

  7. aboualseem

    September 20, 2017 at 9:44 pm

    Hi Jonas
    how to get it in Australia
    Thanks

  8. Destruxia

    November 16, 2017 at 2:03 pm

    What about etoro? There are traders there with great and steady profits, and platform allows you to automatically copy their trades. I’ve invested 1000$ in one of them in July, and that investment is up 10% so far. I expect it to be 20-25% up by next July.

You must be logged in to post a comment Login

Leave a Reply

Blog

Searching for the Meaning of Life in Dubai

Published

on

Last week I traveled to Dubai with a group of people in Wilhelmsen, where I work as a Digital Trainee, for our third module in Design Thinking with Pracademy. We are a group of 24 people which Wilhelmsen considers to be Leadership Potentials. We are fortunate to be a part of this year’s company program, and we have all learned so much about ourselves. In this post, I will try to communicate what we learned during last week’s module. Be aware that this is a four months program, and it’s hard to get the feeling of it by just reading about it. But I hope I can share some of the knowledge that I acquired and get you more interested in improving your own life.

// -- Discuss and ask questions in our community on Workplace.

Find your passion and go all in!

Most motivators and teachers say that you need to find your passion, make work a hobby that you enjoy every single day. I have even caught myself saying that over and over again (on Hacked). However, as I learned during the sessions in Dubai, more than 80% of us do not know what their passion is. I started to wonder if I knew what my passion is. And I’m still insecure about that. I do know that I want to contribute to the world, I want to help and serve people. I want to create things that I know other people will love; I want to leave a footprint on this earth.

I often have this mind experiment where I picture myself as 80 years old with bad health in my nursing home. Do I think that I managed to get the most out of life? Am I satisfied with all the things I achieved? Or do I have regrets and feel remorseful? The goal for every person on this earth is to be satisfied with your life when you’re near the end. I guess most people aren’t in reality. And that’s a big shame. Some people might regret that they worked too much, had too little fun, too few good experiences with their loved ones, too few memorable memories.

I pray that I will be happy with my life and what I accomplished.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

How to find your passion

If you do not know what your true passion is, there’s still hope for you. You can spend years trying to find your ultimate passion. Think of what makes you happy, what you enjoy or care for. My strong passion for creating things started in my childhood. I always drew new inventions on a piece of paper and started small kid businesses. I played music; I was a drummer in a nu-metal band, I started to sing and rap and create songs. I painted and used my creative skills to visualize my thoughts. I traveled during holidays and experienced new cultures, new food. Oh, I love good food. I love cooking a great meal for family and friends.

I could probably achieved anything that I had/have passion for. I could have been a:

  • Cook
  • Artist
  • Painter
  • Drummer
  • Entrepreneur

I chose to become an entrepreneur mostly due to financial possibilities. As being financially independent was and is very high on my priority list. But that does not mean that I wouldn’t have a meaningful life being an artist with less money on my hands.

Economist Angus Deaton and psychologist Daniel Kahneman researched happiness and money in 2009 where the focus was on US standards, and it’s population:

So, where does the $75,000 come into play? Researchers found that lower income did not cause sadness itself but made people feel more ground down by the problems they already had. The study found, for example, that among divorced people, about 51% who made less than $1,000 a month reported feeling sad or stressed the previous day, while only 24% of those earning more than $3,000 a month reported similar feelings. Among people with asthma, 41% of low earners reported feeling unhappy, compared with about 22% of the wealthier group. Having money clearly takes the sting out of adversities.

At $75,000, that effect disappears. For people who earn that much or more, individual temperament and life circumstances have much more sway over their lightness of heart than money. The study doesn’t say why $75,000 is the benchmark, but “it does seem to me a plausible number at which people would think money is not an issue,” says Deaton. At that level, people probably have enough expendable cash to do things that make them feel good, like going out with friends. (The federal poverty level for a family of four, by the way, is $22,050.)

So if you live in the US, a goal for financial freedom could be $75 000 or $100 000 as income per year. If you make more than that, you won’t necessarily become happier just because of the money.

However, if you make too much money and you are in an in-group where your peers make much less than you do, you can be in a situation where jealousy and envy will affect your life. And that is not a good feeling at all. I believe that the people in the middle of the scale live the happiest lives. There have been numerous cases where people that won in the lotteries have ended their lives due to envy and jealousy from their friends and family. Where they thought winning a lot of money would make them happier, while it only magnified their problems.

Empathy

In Design Thinking, empathy is a crucial part of the process. The ability to feel compassion for other human beings. To understand their problems, feelings, and emotions and to share their pain, grief, happiness or sadness. I know for a fact that I could be much more empathic and that is something I will improve. See the video below that shows what empathy is:

We saw this video in Dubai, which almost made me cry (we were in a particular mood..):

There’s so much going on in that video. Mo Cheeks felt empathy with the girl singing the national anthem, and he could feel compassion since he had a daughter at that age.

Things change when you get a child, for me that has a daughter who is seven months, I can relate to the video above. You might not.

What characterizes a great leader?

We did a session where everyone in the room in Dubai explained what a great leader is for them. The list included:

  • Good listener
  • Empathic
  • Understanding
  • Good motivator
  • + more

Most of the points we as leadership potentials defined as a great leader had nothing to do with “IQ.” Most of them had everything to do with “EQ,” emotional intelligence. It is mindblowing that we do not learn more about emotional intelligence during school, and that all businesses focus on “IQ” when hiring, not “EQ.” I believe that is skewed and is important to reflect upon.

Mindfulness

We also learned how to be more mindful. They encouraged us to use 30 minutes to sit quietly, close our eyes, focusing on the now. Breathing slowly and try to get as calm as possible. There’s scientific research on how mindfulness can help you become more happier, healthier and more successful:

And then one of the many guides on mindfulness:

Communication

We did a session where we were paired up to use mindfulness to listen and repeat. A was given 6 minutes to talk about a challenge at work, B was given 3 minutes to repeat what he/she heard, A was then given 2 minutes to clarify what B might have misinterpreted, B was then finally given 2 minutes to repeat what A clarified. This was a session that made me realize how easy it is to misinterpret. This can be used in every aspect of your life. It is so easy to misunderstand what a person is saying or meaning, so try to ask a question after a discussion: “Did I understand you right, that you want…” or “Could you please clarify what you meant by…”.

Writing

A professor of culture and psychology from South Korea gave us a session on writing. How writing in a notebook can help you learn better and understand what was communicated. From now on, I’ll always bring a notebook in meetings and write with my hand. Then I’ll add the written information to my computer later on.

Emotions

We often say: “I am angry.” That is a big mistake. We are not angry, but we do feel anger. So whenever you “are angry, sad, or irritated,” say in your head that you are “feeling angry, because..” and you will be able to control your emotions in a much more sufficient manner. Do not let the feeling itself take over who you are. You are not your feelings, you simply feel them and they will pass.

And Finally, you have the Siberian Railroad: SBNRR: Stop, Breathe, Notice, React, Respond.

 

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Blog

How I Made It: Multimillion Dollar Cash Flow

Published

on

Please excuse the image. It’s not a picture of me nor my car. I own a BMW 318 2009 model with a car seat in the back for our seven months old daughter. It’s been some time since I last published a post on Hacked.com. I want to let you know that I’m going to be more active in the coming months. I’ve just had too many things on my plate, from my Digital Trainee job at Wilhelmsen to Hacked.com, CryptoCoinsNews, MoneyMakers, and family. I want to explain how I’ve managed to create a company with a multimillion-dollar cashflow. Remember, I’ve spent more than nine years on reaching my current level. I’ve had multiple failures, I’ve lost hundreds of thousands of dollars, but I’ve also made a lot of money and recognition.

// -- Discuss and ask questions in our community on Workplace.

When I was 16 years old, I started my first company which I registered on my mom. I called it for “Limitless Juggernaut, ” and it was a clothing line that I started to sell in Tønsberg (a small city in Norway). I managed to get my clothes in one shop in Tønsberg, but it did not catch on. I think I sold five to ten pieces and ended up with a loss of $5000. I worked as a phone seller to make the money I spent on my micro startup. In 2008, when I was 18, I started a phone import business where I imported phones from China and sold it on Norway’s “ebay.” I managed to make $3500 in profit each month while attending high school. There was a guy in Oslo, the capital of Norway, that wanted to get into the phone businesses with me. I was young and naive; I put too much trust in a stranger that ended up hustling me. He gained control of my stock, and I transferred some money to him, then I never heard back. I decided to shut the business down.

In 2009 I started studying Entrepreneurship and Business at a college in Oslo. That’s when I founded MyGoodAct which was one of the first crowdfunding platforms for social causes. During four years the platform raised more than 1.5 million USD to different social causes. I managed to sign up the most significant NGOs in Norway, but the main issue was to establish a positive cash flow for the startup. Even though we won awards, was funded by some larger companies and organizations, we never really got the traction we needed. I decided to shut MyGoodAct down in 2015.

In 2013, when I was working part-time for an NGO, I discovered Bitcoin (Cyprus chaos was blowing up the Bitcoin price and made it to the news). I fell in love with the digital currency, mostly due to its deflationary functions. I was sick of the fundamentals of our economy, with fraction banking and the private FED. At that time, there were few news sites for Bitcoin, so I started CryptoCoinsNews. I started writing two to three articles per day, posted stories on bitcointalk.org and Reddit. After a couple of months, the site had 100 to 300 visitors per day, and I managed to secure one advertiser that paid one bitcoin per month for the top banner. After that, I had some funds to pay other writers with, so I started to recruit writers. The site grew, I got more advertisers that paid a fixed fee per banner on a monthly basis. Today, CCN is one of the largest bitcoin news sources in the world. Last month, I bought CCN.COM for 150 000 USD, and we are doing a complete redesign of the site and hiring more full-time writers. I want to make CCN the world leader in cryptocurrency news, just like Marketwatch.com is for stocks.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

I bought Hacked.com in 2014 for $50 000. I saw the domain on Flippa.com, and I had profits from my previous bitcoin investments. I had no plan for the domain; I just thought it was the coolest domain I’ve ever seen available. I was up 24 hours bidding on the frigging domain while watching The 100 on Netflix. The other bidder I was bidding against only increased the price with 50 to 100 USD at the end of each auction period, which made the auction extend with another hour. I became so tired and angry at that tactic, so I contacted the seller and told him that I’d exit the auction if we do not end this soon. I was ready to bump it up with $5 000 or even $10 000 just to be done with it. The seller added a buy now price at $50 000, and I was able to purchase it before the other bidder.

We started Hacked.com as a technology news site, at one point, we had a trending story on Reddit that made it to the front page of Reddit.com. It generated almost a million visitors during one day; our servers could not handle the traffic. However, even with one million visitors, we only made $2000 in ad revenue from Adsense. And, you need to keep pumping out extraordinary articles to keep such a momentum. The prices for such articles could be anywhere from $50 to $500. I did not have the funds to keep funding writers and attract better talent, as the site always operated with a loss. After one year, I decided to put Hacked.com on pause.

In 2015 I started Tailored Message that was a news app for youth in Norway, with gamification and a shop. The idea was to make a clone of “Instagram/Reddit” for news and blogs and let the users earn points based on ads in the app that they could spend on products in our in-app store. We launched the app in April 2016, and we got more than 20 000 downloads, just in Norway, and made it to the top 3 most downloaded apps. I spent almost 100 000 USD on the startup, and in the summer of 2016, we secured 200 000 USD in funding including a marketing deal with one of Norway’s largest media companies worth 300 000 USD. I moved into the media company and hired a salesperson. Unfortunately, the marketing deal that was signed by their director was never followed through. I spent almost six months implement the marketing deal that we already had agreed on. The media company always had excuses for why they could not implement it, and we changed the marketing deal two times without any success. The investors I had became worried, and in the winter of 2016, I decided to shut it down, pay the investors back with what was left, and try to focus on something else. I went to a lawyer in Oslo, and he told me that we could sue the media company for our losses, but that it would cost $30 000 and could take a year or two. I was upset, but I did not want to have a lawsuit to define my next year. I backed out.

What I learned from this experience, which was a very tough period in my life (as I hate to disappoint people that put their trust in me), is that you should never depend on a single deal you make with any company. Especially large companies. In large companies, you have so many different opinions, so many shitheads, so many useless persons that only think about themselves and their KPIs. If you are working with large companies, you need backup solutions. I think the best way to run a startup is to be independent, and just gun for it on your own. Fuck the large companies; they are too slow for a startup.

Well, that’s funny. But I was hired in January 2017 by Wilhelmsen, one of the largest shipping companies in the world, as a Digital Trainee. I had lost most of my cash holdings due to Tailored Message, and I needed something more stable to focus on. My wife was pregnant, and we expected our child in April 2017. I’ve never worked fulltime in a large corporation before, and I thought it would be a great experience to learn how it works. Right now I’m working on a 3D print project where Wilhelmsen wants to 3D print ship parts to the maritime industry, which has been and is an amazing project. I have a leading role there, and I’m learning many new things.

I’m a person that need multiple projects to be satisfied. So after working hours at Wilhelmsen, I pivoted Hacked.com into becoming the service you see today, based on subscriptions. I hired a couple of people, and we started small. After a couple of months, we had a positive cash flow, and I could hire more people to take over some of the time-consuming tasks. And now, Hacked.com is probably the largest paid cryptocurrency community in the world. My initial idea with Hacked.com was to educate people in how they can become more independent of the 9-5 job reality most are living in. This is something that I want to focus more on in the coming years. I also want to host conferences and meetups in 2018. I think we can make something great out of Hacked.com and be supportive of each other.

Right now, both CCN and Hacked.com is generating more money than I would ever dream of. It’s now a multimillion-dollar cash flow business. And I think it’s safe to say that I’ve already reached my long-term goal. Of course, we have large expenses, but the profit is still positive and enables me to invest more in the ventures and improve them.

I’m still working as a Digital Trainee at Wilhelmsen, and please understand that I’ve been working nonstop now for the past two years, I’ve never had one full day off. Sometimes I’ve had to work nights because of DDoS attacks, server problems or similar. I’ve employed more people to take some of the daily tasks I’ve had. I’m also focusing on spending more time with my wife and daughter, as I’ve been absent for an extended period. Money, cash flow, and business is not everything, family, friends, and experiences are what you will remember when you are 80 years old. Remember to enjoy your life.

However, I’m still not satisfied. That’s the way I am as a person. Damaged. Entrepreneurial. I continuously want to improve, want to launch better services, give more people the services that they appreciate. Help people reach their full potential. I think there are some good opportunities in the shipping industry, and I may be able to do something fascinating with Wilhelmsen in the coming years.

Focus on what you love to do, and never look back. Don’t let a shitty job bring you down.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Blog

My first experience with Robot Trading: Up $5 000 in Two Weeks

Published

on

Since I’m pressed on time with multiple obligations (job, familiy, hacked.com, CCN, MoneyMakers) I decided for a couple of weeks ago to look into robot trading. I wanted to find one or multiple robots to do the trading for me. I ended up with downloading MetaTrader 5 and buying two different robots from their marketplace. I started with 16 000 USD on the trading account, and after two weeks the robots have made me $5 000.

// -- Discuss and ask questions in our community on Workplace.

That’s a whopping 31% increase within 2 weeks…!

My robots usually trade during the night, and I’ve decided to completely trust them. The 16 000 USD is a sum I’m more than happy to lose if I can learn anything from dealing with trading robots.

When that is said, MetaTrader’s interface really “SUCKS”. It’s so bad, I can’t understand why MetaTrader is considered the best trading terminal for robots. Maybe that’s a good business idea for someone out there? Disrupt MetaTrader.

// -- Become a yearly Platinum Member and save 69 USD and get access to our secret group on Workplace. Click here to change your current membership -- //

So, which robots do I use?

I do not want to disclose that just yet, I need to test my robots rigorously before I can recommend any of them. And if this is a money making machine, we can laugh all the way to the bank.

Have a good weekend.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



Feedback or Requests?

Continue Reading

Trending