Richard Crenian Blogs
December 9, 2008
“Advice to a Billionaire!”
How do you become a Millionaire?
Start with a few Billion and invest in a NHL hockey team!
I know that the joke is old and tired, and I am not a jokester, but how much truth is there in what I am saying?
I was listening to a talk radio station at lunch and they were talking about a potential purchase of a hockey team close to Toronto (OK it is Buffalo!) by a Canadian billionaire.
First, you work your butt off; lucky enough to find a product that will make you a billionaire. Then you focus on your passion, which is hockey, and what do you want to do with your money? Blow it on a NHL hockey team, that may be overpriced, and the only people who care about hockey are guys like us, Canadians, and there are only 33.3 million of us? (There are over 35 million just in California!)
If you have a passion in sports, buy a junior hockey team, and manage that, and save the balance of the millions to philanthropy, or just as important your family. Money doesn’t go on trees and you know that if your stock price drops by 66% in one year perhaps one should pull up their socks, and seriously think that God has blessed you so don’t blow it!!
It is hard to make it ($) back, unless you know the deal is so, so, so low and you can sell in better times for high, high, high. But meanwhile it becomes a cash drain, as the overpriced wanna-be superstars and the league takes your money. (Why else do they want you to buy? Someone is selling and you are buying!!)
Perhaps find some good quality sound commercial real estate and have your money work for you, by having your tenants pay off your mortgage, your taxes and overheads, and give you nice cash flow to boot! Leave the cash for the kids, not the headaches!
What sounds better……..a loss or an income? Don’t thank me for the advice; ask your kids what they want you to do?