Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Would you accept a buyout offer that made you rich but you still felt was undervalued?

news.ycombinator.com

Post reply on HN
Print view View original

41–49 of 49 posts

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#41

Post by ojbyrne »

jey wrote: post #37
suboptimal wrote: post #33

Earlier quoted context omitted.

I do. Put the million in a savings account, move to an affordable area and rent, or purchase a living space and bank the rest, then live (modestly) off the interest. Or if you can tolerate greater risk, pursue investments with higher returns, and/or expatriate yourself. The question is, could you stop working and retain your sanity? I wonder about people who achieve success too early in life--they have many years ahe…

Yes, but remember to subtract inflation from the expected return! 5% interest means you get like 2% post-inflation.

The problem is of course, that after taxes (you forgot those), and inflation, 5% interest is really more like -0.5% return.

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#42

Post by pchristensen »

huherto wrote: post #40
DaniFong wrote: post #30

Earlier quoted context omitted.

It depends on what you're using it for. When I cash out, I'm considering putting much of my earnings into fusion research.

Bad decision. You should diversify it is economy 101.

That sounds like funding a passion, not managing an investment. Your passions shouldn't be nearly as evenly diversified as your portfolio.

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#43

Post by DaniFong »

huherto wrote: post #40
DaniFong wrote: post #30

Earlier quoted context omitted.

It depends on what you're using it for. When I cash out, I'm considering putting much of my earnings into fusion research.

Bad decision. You should diversify it is economy 101.

I meant I would fund my own research.

Also, diversification is a decent passive strategy, but not one that you'd take if you were intent on making substantial gains.

As Warren Buffet says, "no one ever got rich on their seventh best bet."

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#44

Post by rms »

DaniFong wrote: post #43
huherto wrote: post #40

Earlier quoted context omitted.

Bad decision. You should diversify it is economy 101.

I meant I would fund my own research. Also, diversification is a decent passive strategy, but not one that you'd take if you were intent on making substantial gains. As Warren Buffet says, "no one ever got rich on their seventh best bet."

Agreed, I want to get rich to fund my own research as well.

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#45

Post by hhm »

wschroter wrote: post #34
suboptimal wrote: post #33

Earlier quoted context omitted.

I do. Put the million in a savings account, move to an affordable area and rent, or purchase a living space and bank the rest, then live (modestly) off the interest. Or if you can tolerate greater risk, pursue investments with higher returns, and/or expatriate yourself. The question is, could you stop working and retain your sanity? I wonder about people who achieve success too early in life--they have many years ahe…

People undervalue $1 million (or similar numbers) incredibly. It doesn't mean you don't have to work, but it pays for just about all of the things you end up working the first 15 years of your life for - house, furniture, "stuff". Once you've purchased all that crap, any money you make over and above that actually seems like a lot more because it's not going toward buying couches and bedroom sets. I made my first mil…

Thanks you all for your interesting replies (all comenters replying to my original comment).

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#46

Post by nazgulnarsil »

hhm wrote: post #32
nazgulnarsil wrote: post #23

Earlier quoted context omitted.

this is the crux. will it make your life any better? I'd say the law of diminishing returns applies here. 1 million will make you happy because you don't have to work anymore, 2 million will make you happier, but not twice as happy.

Do you really think 1 million means you don't have to work any more? 1 million is 10.000 per month for less than ten years. Unless you invest them I'm not sure you can't stop working forever if you have that amount of money.

5% interest (which is meager) is 50,000 a year without touching the million itself. after taxes it isn't a fantastic salary but anyone who can't live on it is living in some kind of fantasy land.

do 8-10% and you're talking serious money for no work.

I know people that tell me they can not live on less than 100,000 a year. If i could I would send them to ethiopoia, one way.

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#47

Post by mattmaroon »

pchristensen wrote: post #42
huherto wrote: post #40

Earlier quoted context omitted.

Bad decision. You should diversify it is economy 101.

That sounds like funding a passion, not managing an investment. Your passions shouldn't be nearly as evenly diversified as your portfolio.

Right. My thought is take $x, diversify to ensure that if all else goes wrong, I'm still set, then take the rest and do fusion research.

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#48

Post by mattmaroon »

hhm wrote: post #32
nazgulnarsil wrote: post #23

Earlier quoted context omitted.

this is the crux. will it make your life any better? I'd say the law of diminishing returns applies here. 1 million will make you happy because you don't have to work anymore, 2 million will make you happier, but not twice as happy.

Do you really think 1 million means you don't have to work any more? 1 million is 10.000 per month for less than ten years. Unless you invest them I'm not sure you can't stop working forever if you have that amount of money.

One million with no investment wouldn't last you long, but only a retard would stick it under their pillow. It's trivial to earn 5% and live off of the $50k in much of the country. That's the worst case and assumes no effort at all.

Re: Would you accept a buyout offer that made you rich but you still felt was undervalued?

#49

Post by huherto »

mattmaroon wrote: post #47
pchristensen wrote: post #42

Earlier quoted context omitted.

That sounds like funding a passion, not managing an investment. Your passions shouldn't be nearly as evenly diversified as your portfolio.

Right. My thought is take $x, diversify to ensure that if all else goes wrong, I'm still set, then take the rest and do fusion research.

This sounds more sensible:-)
Post reply on HN