- 10:05 AM, Monday,
October 4th, 2013:
-
- Finally. Finally
the polite friends and family members will no longer
think I'm a drug-dealer. They finally won't think I'm
somehow cheating/stealing SOMETHING to presumably
NEVER work. The day before Vienna's birthday, IMAX hit
over $30, I sold my remaining stock and can now
finally tell the incredibly fortunate story of the
keystroke that changed 5 years of my life, nearly
changed the entirety of my life, and that nearly
didn't happen.
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- When Chris Nolan
decided to use IMAX cameras for Batman, I was amazed.
I thought: "Wow, that seems like it could
change that company forever if people follow suit." I
started watching the IMAX stock that summer (2008). It
was around $7.
-
- The reason
I was even looking at stocks was that earlier in
the year I had no choice but to completely drain
my home equity line of credit as I got a tip that
they would soon be freezing it and I'd never be able
to touch it. I had to take the FULL amount
RIGHT THEN ($55,000) pay interest on that... or
never have access again. For a guy who has zero credit
card debt, this was a frightening proposition... but I
knew with my line of work, I needed future access, so
I figured I'd try and offset the interest by
making some investments short and long term. I finally
got the nerve in September of 2008 to buy 1000 stocks,
around $7000. I opened an E-trade account transfered
my money and when it came time to hit BUY, I stared at
the screen for a looooooong time. $7000 wasn't too
much but man, I just couldn't risk losing it. I
felt good about my research, I had watched the stock
for 6 months - I hit buy.
-
- "We're sorry, but
you need to have your brokerage account for 14 days
before making a purchase."
-
- FUUUUUUUUUUUUCK.
I was soooooooooo angry. So annoyed. I just
shut my laptop in disgust and decided clearly
investing wasn't for me if they have a freaking
FAILSAFE for idiots with impulse stock buys. And guess
what hapoened at the end of September
2008?
-
- CRAAAAAAAAAAAAAAASH.
The market CRASHED. With my jaw dropped, I looked
up IMAX days later and it was at $2.75.
Fuuuuuuuuuuuuuck. I would've lost a small fortune...
-
- ...of course, this
was one helluvan opportunity. Movies are recession
proof. One of those universal truths. So even if
directors using IMAX cameras didn't become the norm
(which it didn't)? This stock shouldn't stay $2.75.
With talks of this "Avatar" coming out in 3D and
IMAX being set to profit from the 3D boom?
You could say this was kind of a no-brainer.
I had looked up a list of Pixar movies coming
out? Every single one for the next several years would
be released in 3D. I was now, not only sure this
was a good buy? I was ready to go all-in. I mean,
$50,000 all-in. I had saved a little from my job, my
expenses were nonexistent (I'm a saving homebody) and
I just KNEW that stock was not going
lower.
-
- So I put my entire
$55,000 from my HELOC into my E-trade account and
stared at the stock jumping around the $2.70-$2.80
range all day. Hell, even if it went to $5
I could make a fortune. I typed in $50,000/ I
remember the way the screen looked. 50,000. It hits
you the risk you're taking. I took off a zero and made
it $5000, then put it back on. I mean, since it
crashed? I could buy TWICE the stocks
I was gonna buy weeks previous for
LESS money even at $5,500... so I typed in
$55,000. It felt right.
-
- $55000
- $5500
- $55000
- $5500
-
- Guys,
I stared at that $55,000 for so long I was
logged-off probably 3 or 4 times. I am not a risk
taker, I cannot stomach it and I have
TWO MORTGAGES. It would nearly drain my
savings...
-
- ...so I pussied
out. I bought 2000 shares for only $5500. I saved
myself $1500 from the initial attempt and got twice
the stocks. It seemed like the smart, responsible
thing to do. And believe me, it was...
-
- ...when it hit $35
a share however in the summer of 2011? It was tough to
swallow. For those who aren't processing the math...
my shares would've been worth $700,000 had I kept
that $55,000 in. Nearly 13 times my initial
investment. I could've paid off my house with
hundreds of thousands to spare. Instead? Little by
little I ended up making about 10x my initial
investment (around $50,000 total). Which, believe me -
is fucking spectacular. Because I piece-mealed it
over the years? I kept my income low enough that
mortgage interest write-off each year meant
I never paid a dime in taxes. I played it
smart, stretched every penny and it has allowed me to
stay home all of 2011 and 2012 and redo the house,
allowed me and Talya to stay home with Vienna and with
this final sell-off? A good chunk of 2014 with
Cameron. It has been the most peaceful, incredible few
years of my life and I feel blessed beyond
measure...
-
- ...but I was
one quick, electrical, synapse in my brain from
hitting that button with an extra 0 on it. I know
people have those stories "Oh if I had just bought
stock at this time, I'd be THIS rich!", but this
story goes a bit further. I was playing with 2
numbers back and forth for a looooooooong time. And
I did actually invest a lot, but wow if
I wasn't a middle-class little bitch? I wouldn't
have even blinked at $55,000. It's an amazing little
twist... but if making $50,000 is that worst of the
two outcomes? You're doin' good.
-
- And truthfully?
I'm done. When it was going up the people that knew (I
kept it quiet on here simply not to jinx it) kept
asking for tips and I had NONE. I basically
said: "Listen, if the entire stock market
crashes? There's opportunities. But in a normal
economy? I haven't the slightest idea. And a
1300% return? Uhm, yeah, that doesn't happen. And I'm
done investing. I think it's a joke. Those with
insider info beat the system constantly and it's 100%
a gamble. I did make an educated gamble, but make
no mistake - it was a gamble. Had IMAX not start
investing heavily in China? They would've gotten their
ass kicked when people soured on 3D. They were smarter
than I knew they'd be. I was extremely lucky
and a few days after I sold over $30? It crashed to
$25. BOOM. For what I sold? That would've been
$3000 I lost. I mean, it's so volatile. It's
insane.
-
- Anyway, now you
all know the rest of the story. How I seemingly never
work, take the time to build a
GODDAMN GOLF COURSE in my backyard and
stay home with the kid. But make no mistake, I live
like the poorest mofo on the planet. Live, below, your
means. It is the best piece of advice you can ever
give. It is the key to a stress-free, happy life. It's
freedom. It's time. It's floating
downstream.
-
- Adam
-
- PS - I went
back and saw that I wrote "Tape & Sticky"
right around the time of buying the stock and figured,
that was a good enough reason to use it for the score
of this entry's video. Won't make a lick of sense to
anyone who happens upon the video without reading this
but all of you will smile.
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