What Is The Largest Amount You Have Lost Trying to Make More Money?

amazonaddict on 08/08/2020 - 16:19
Last edited 29/11/2022 - 13:18 by 1 other user

I bet quite a few folks here must have lost a bit of money trying to make more of it. Still we all keep trying and never give up. With that good spirit I wanted to share my losses.

2012- Stock market $1000
2017 - Primary House (If I sell it now, I am looking at $200,000 in loses, so not planning to sell for next 10 yrs)
2018 - Alt coins: $600 ( Sold my eth and bought those stuff)
2020 - Off the plan Investment property that was signed in 2015 completed just before Corona, It is empty now ( Could not find anyone with good rental history. So far I have paid $5800 in interest. :).

I don’t care about these failures as long as I can feed my family. I just keep trying. :)

What about you guys?

Financial

Comments

  • Seraphin7 on 08/08/2020 - 16:24
    +8

    Crystallised losses from original capital? Barely worth talking about.

    Paper losses from investment peaks from time-to-time? Yowsers …

    • SlickMick on 09/08/2020 - 21:09

      Same. If you're going to invest, you aren't always pick a winner.

      My philosophy is never admit you made a mistake, just wait for them to turn around…. though I word that as "the fundamentals haven't changed".
      I made 2 particularly poor decisions when I first started a SMSF. I saw a lot of people give up on 1 company and sell out for big losses, but it eventually turned around and is doing well now. The other is still going backwards, but I'll hold on until they either turn around or go under. Captain of the ship approach.

      • ProlapsedHeinous on 10/08/2020 - 01:05

        That's how I feel about crypto. The upsides are way too high to consider selling any of it at a loss.

  • Muzeeb on 08/08/2020 - 16:27

    2017 - Primary House (If I sell it now, I am looking at $200,000 in loses, so not planning to sell for next 10 yrs)

    How?

    • SnoozeAndLose on 08/08/2020 - 16:29

      Late 2016 - Early 2017 is the housing peak

    • amazonaddict on 08/08/2020 - 16:50
      +10

      i bought a 30 yr old house for $740k in Blacktown area. $40K went into stamp duty and stuff. invested $20k into renovating bathroom and few kitchen stuff, then $3k in timber floor, new paint & airconditioning all 3 rooms. Today I saw a similar house with 40sqm bigger land advertised for$560-$600k. :)

      • Neoika on 08/08/2020 - 16:54
        +7

        Most likely, you find an incomparable property.

        • amazonaddict on 08/08/2020 - 16:57
          +3

          may be. but, there is at-least a 15% fall in house prices Blacktown area compared to 2017. That’s I am sure.

          • FoxJump on 08/08/2020 - 19:40
            +4

            @amazonaddict: I bought a house in Glenwood thinking of moving in to live into. At the peak too. Well, life changed and now we want to live in a different suburb. Trying to sell it looks like at least 50k in price discount from what we bought plus agents Commission plus stamp duty wasted. So yeah 150k at least :'(

            • Neoika on 09/08/2020 - 09:13
              +2

              @FoxJump: Swap does not really matter. Your target area may have dropped $200k+ in your logic.

              • vetopower on 10/08/2020 - 08:06

                @Neoika: Australia or even Sydney is not a single market.

                Favourable areas are continuing to rise. Unfavourable areas are stagnating and starting to drop. If you fall on the wrong side of that divide (ie looking to move from an unfavourable to a favourable area), you're facing potentially big losses.

              • BarryBargain88 on 12/08/2020 - 16:41
                +2

                @Neoika: Sort of correct. You still have to factor the stamp duty and agents commission

          • Hangryuman on 10/08/2020 - 08:24

            @amazonaddict: I just sold an inner Sydney house for 15% below the top of the market price I might have got pre-COVID

            the sold price is about 7x the purchase price in 1991

            after selling costs and huge CGT, I expect to net nearly 6x the price I paid for it in 1991, which looks like about 6%pa on the purchase price

            but my net cash return on my initial small cash investment, after annual expenses and CGT, looks more like 16%pa

            time will tell whether selling this now was the best financial decision I ever made (CRASH!)

            or a bad decision (subsequent BOOM!) …

            • ihbh on 10/08/2020 - 14:01

              @Hangryuman: 2 or so years prior to now is good time to sell if you're holding for 20 odd years.

              Yes, your internal rate of return is around 15% p.a. due to the leverage, assuming ingo offset by outgo.

            • virhlpool on 11/08/2020 - 23:23

              @Hangryuman:

              but my net cash return on my initial small cash investment, after annual expenses and CGT, looks more like 16%pa

              Didn't understand this part. Are you referring to the same house (20% deposit that you would have paid initially) or some other investment?

              • Hangryuman on 14/08/2020 - 18:38

                @virhlpool: it's a long time ago and I forgot but my IRR spreadsheet looks like I somehow got away with a 5% deposit

                (later investments I borrowed 105% using equity from other existing property - meaning 100% of the purchase price plus stamp duty & other purchase costs)

                but yes - the same house - with maybe 5% deposit.

      • Muzeeb on 08/08/2020 - 17:29

        Ouch

        • amazonaddict on 08/08/2020 - 17:58
          +3

          Yeah, It stings a bit. I would have saved 1/5th of a million or bought a better house for the same money I spent. But, the time I had spent enjoying the home is worth atleast $100k. I put up a projector setup in one bedroom and man it was good (until I had a baby)

          • ihbh on 10/08/2020 - 14:03

            @amazonaddict: Could you have had 100k enjoyment renting?

            • amazonaddict on 10/08/2020 - 14:29

              @ihbh: I am not sure how the land lord woul feel about drilling holes and handing up projectors and screen. :)

      • Sito85 on 09/08/2020 - 09:27
        +9

        $3k in timber floor?? More like $3k in the cheapest laminate flooring.

        • amazonaddict on 10/08/2020 - 08:33
          +3

          yes. Vynyl flooring. Just wanted cover the hideous 30 yrs old tiles.

      • cashless on 10/08/2020 - 09:26
        -3

        Everyone pays stamp duty, so not a loss.
        Most owners renovate, so not really a loss, but more of an investment (subjective).
        If it is your primary residence then you will not pay any CGT when you sell it.
        Reckon you're ahead on this one;)

        • Zephyrus on 10/08/2020 - 11:51
          +10

          Still a loss. It's like saying brokerage on shares isn't a loss because everyone pays it.

      • iamhurtin on 10/08/2020 - 15:52

        Jesus christ!!

        It costs that much for a house in black Town?

        • amazonaddict on 10/08/2020 - 16:40
          +1

          4 bedroom house in Glenwood or Quakers hill were close to a million dollars until early 2019. (Actually over a million after Stamp Duty). The person who sold my house bought that for $360K in 2012. He bought a new 4 bedroom house in Schofield for $850K with smaller land (2/3 of mine). I thought he was lucky.

          • iamhurtin on 10/08/2020 - 17:33
            +2

            @amazonaddict: Wow

            So if I wanted to buy my grandparents old house in Willoughby I'd have to rob all the banks in chatswood first?

            • amazonaddict on 10/08/2020 - 17:38
              +9

              @iamhurtin: You should have tried to be their favourite. It is still not too late. :)

            • brad1-8tsi on 11/08/2020 - 00:42

              @iamhurtin:

              So if I wanted to buy my grandparents old house in Willoughby

              2 bed, 1 bathroom semi with no parking in Crows Nest is over $2m and they aren't on the market long. Willoughby is slightly different housing stock and demographic but it's in the ballpark

              • iamhurtin on 11/08/2020 - 00:48

                @brad1-8tsi: Considering the way crows nest is going

                I'd spend that money elsewhere

                • brad1-8tsi on 11/08/2020 - 01:02

                  @iamhurtin: Some parts are changing for the worse but that's also happening in the surrounding suburbs.

                  The Northern Beaches road / tunnel is a worry.

                  Despite all that, it still has good PT to the city and Parramatta, close to supermarkets, restaurants, etc.
                  If you want a house they aren't making any more land for them.
                  If you want access to good schools then there are plenty in the area.

                  It's not everyone's ideal place to live but nowhere is.

          • virhlpool on 11/08/2020 - 23:25

            @amazonaddict:

            4 bedroom house in Glenwood or Quakers hill were close to a million dollars until early 2019.

            How abt now? Has that area dropped by much?

            • amazonaddict on 12/08/2020 - 01:13

              @virhlpool: Those guys are not selling much. But, one of my friend who bough a 3 bedroom house for $780K in Quakers hill (Close to the famous public school) said, his valuation came around $60K less purchase price (He signed a land+house package in Melbourne last week).

        • Keplaffintech on 22/08/2020 - 10:05

          not anymore!

      • freemoneyhunter on 10/08/2020 - 21:26
        -3

        You can't make money renovating, the value of the house is in the land. At the maximum, every $1 you put in will be $1 increase in sale price, better off just saving the money in bank for interest or in shares, rent it to people and hope for capital gains, don't spend money to improve it, extract it.

        • sangohan on 10/08/2020 - 22:01
          +1

          don't spend money to improve it

          only if you don't intend to live there yourself - otherwise, renovating sometimes is required to make a place livable.

      • grocerygetter on 12/08/2020 - 19:09

        I bought a 4 bedroom fibro house with a 2 bedroom granny flat on 830sqm fully renovated with new kitchen and bathroom earlier this year in Blacktown for $860K

        Hoping it was the right decision in the long run 😅

      • thriftysach on 13/08/2020 - 21:54

        Your house must be a proper eshay

  • dylanando on 08/08/2020 - 16:32
    +1

    I lost like $5k in crypto.. somehow
    I invest in a lot of time and cash in websites and sass but end up just giving up on them, most likely my biggest pitfall.

    • Revrnd on 10/08/2020 - 09:14
      +1

      I lost a whole BTC wallet that had around 20- odd BTC in it from the early CPU mining days..

      And then went BTCP / ZTC and lost what could have been another $17k (when it debut at exchange, demand was atmospheric).. wallet now only worth $1.50 thereabouts.

      and then there's another $20k worth of computing resources attempting to tap into the online PC rental market / distributed 3D rendering…

      crests and troughs… after my initial BTC discovery, it's all been troughs unfortunately.

      • 91rs on 10/08/2020 - 11:17

        "And then went BTCP"

        Yep burnt on that one pretty hard too, only half what you did but still its all gone now.
        $1k cash in before BC went crazy, then riding some of the highs, sold, put it in to other coins then BTCP, they did a snapshot early in the year but the new chain hasn't gone ahead yet, total scam coin.

      • drfuzzy on 11/08/2020 - 17:44

        If it makes you feel better I lost closer to $100K in the BTCP fiasco.

    • frostman on 11/08/2020 - 10:54
      -5

      crypto is a scam - pyramid scam

  • djones145 on 08/08/2020 - 16:40
    +16

    1000 on eneloops batteries

    was hoping for a zombie outbreak and eneloops be used for trading

    • FIVEDOLLAR on 08/08/2020 - 17:08

      Depends if you bought it on a bargain or … RRP …

  • cloudy on 08/08/2020 - 16:44
    +16

    No one is successful in investing without losing a lot of money at some stage. Each dollar lost is a lesson learnt. Of course its better to learn from others mistakes, saves more money, but often those lessons dont stick quite the same way in ones psyche.

    • amazonaddict on 08/08/2020 - 16:53

      true. I wonder when I would learn enough to stop learning this way. I have experienced FOMO effects and aftermaths of it. Other lesson was anything that goes up crazy will always come to senses. We just have to patient. :) Happened with House prices and Bitcoin.

    • gromit on 12/08/2020 - 14:32

      Yep, though my biggest loss (about $40k) taught me it is cheaper to research and learn from other peoples mistakes and secondly remove all emotion out of investments and purchases, you are there to make money.

  • Neoika on 08/08/2020 - 16:48
    +1

    OP earns big on Amazon if the name checks out.

    • amazonaddict on 08/08/2020 - 16:54
      +9

      the other way actually. Thats whereI spent most of my earnings. 😏

  • kahn on 08/08/2020 - 16:49
    +5

    Looking at my CGT calculations for the last financial year, my biggest single trade loss was over $15,000. I became too enthusiastic after an earlier BBUS trade and tried my luck a second time.

    • amazonaddict on 08/08/2020 - 17:03
      +1

      my uncle sold a lot of stocks at a loss of $70k this year. He invested in an australian lithium battery company he told. I am glad I did not buy in to it when advised me to do so. phew.

      • kahn on 08/08/2020 - 17:08
        -1

        As far as I'm aware, lithium-related stocks should be rising in general. I follow international politics here and there and noticed that Elon Musk was influential in the US-backed coup in Bolivia (they have the largest reserves of lithium). Tesla shares have skyrocketed, so lithium stocks should be rising in unison.

        • amazonaddict on 08/08/2020 - 17:15
          +2

          He told me the exact same thing one or two years back. I was almost sold as that was logical.

          But look at the graphs. I just googled. https://www.nabtrade.com.au/investor/insights/latest-news/ne…

          • kahn on 08/08/2020 - 17:22
            +4

            @amazonaddict: He told you that there would be a coup in Bolivia? That's one evil uncle you've got there.

            • amazonaddict on 08/08/2020 - 17:31

              @kahn: My sincere apologies. I read Elon musk snd electric car and was hyped to type a respose. Did not get read the coup part right. Ok, I was not aware of this riot thing, and I guess neither my uncle. that means he is going be very sad soon.

              • [Deactivated] on 08/08/2020 - 20:17

                @amazonaddict: I think you need to look up what a coup is.

        • dcep on 08/08/2020 - 19:36

          it's called lithium batteries but the only very little lithium in it, mostly nickel ?

          and china has abundance of lithium … heaps of them everywhere

          • kahn on 08/08/2020 - 20:12
            +1

            @dcep: I'm not sure about the percentage of lithium in lithium batteries, but I don't think any American companies want to be reliant on Chinese resources given the trade war. The Bolivian coup was what the US wanted to achieve in Venezuela. I was only joking about the OP's uncle :-P

            • dcep on 08/08/2020 - 20:32

              @kahn: don't forget the huge ass tesla gigafactory in shanghai

        • [Deactivated] on 08/08/2020 - 20:16
          +1

          You know Tesla sources all their lithium from Australia, right? They had zero to do with a Bolivian coup. But if you want to believe the crazy talk, go ahead.

          • kahn on 08/08/2020 - 20:31
            +1

            @[Deactivated]: Do you think it's impossible that they could start using lithium from Bolivia? Are you also aware that Elon Musk's response to the coup in Bolivia was "We will coup whoever we want! Deal with it."?

            That doesn't necessarily mean that Tesla orchestrated the coup. I even doubt that there's going to be any proof that Tesla was involved. However, there's a long history of US companies shaping their country's foreign policy, often leading to the overthrowing of foreign leaders that don't bend the knee to corporate interests.

            • [Deactivated] on 08/08/2020 - 20:39
              +3

              @kahn: Do you think that response was tongue in cheek, to trigger the morons?

              If you'd read his other tweets regarding this, he clarified this, and said unequivocally for said morons, that Tesla had nothing to do with in, and they source all their lithium from Australia.

              You're off the scale conspiracy theory crazy buddy.

              • kahn on 08/08/2020 - 20:49

                @[Deactivated]: Yeah, there's a small chance it was, but I highly doubt it. He followed it up with "Congratulation to the people of Bolivia" after the democratically elected Morales was ousted. So, do you seriously think he is baiting morons or that he is being the moron?

                Edit: an excerpt from a report on the coup:
                "Musk’s plans to open a car plant in Brazil and use cheap Bolivian lithium had hit a snag with the defiant president [Morales] refusing to give him a sweetheart deal. Morales’ successor, the military-backed Jeanine Añez, immediately began privatizing the country’s key resources, and there is widespread speculation that such a deal is imminent after Añez’s running mate in the now-suspended 2020 elections asked Musk to build a factory inside the country."

                • [Deactivated] on 08/08/2020 - 20:58
                  +5

                  @kahn: This is crazy seeking alpha conspiracy theory crazy crap. Base your ideas on facts. Tesla has zero plans to use lithium from anywhere but Australia. Tesla has zero plans to open a factory in Brazil. Just absolute bullshit, promulgated by morons.

                  • kahn on 08/08/2020 - 21:24
                    +2

                    @[Deactivated]: Your continued use of words like "crazy" and "morons" doesn't strengthen your argument one bit. It just makes you appear hostile.

                    A quick web search points towards:
                    Tesla gets courted by Brazil to establish a Gigafactory in the country

                    • [Deactivated] on 08/08/2020 - 21:48
                      +2

                      @kahn: There is no argument here. You’re promulgating bullshit. There are facts and there is bullshit. You’re not a fan of facts, and would rather live in a make believe world where companies implement leadership changes in countries to gain access to abundant resources that they could get literally anywhere. I mean even your latest ‘evidence’ is foolish. Somehow you think that an obscure politician in Brazil suggesting that one of the world’s largest car companies should build a factory there, is the same as said company confirming and planning a factory in that country, as part of a greater conspiracy to depose a dictator of a different country, in order to gain cheap resources, of which it already has a plentiful supply. Righto. Better watch out with all that detective work, the silent black helicopters will be on you any minute.

                      • rokufan on 06/09/2020 - 19:18

                        @[Deactivated]: If I remember correctly Kahn was on here calling the Hong Kong protests an American operation. That was about 12 months ago, look at the situation now with China subsuming HK. He seems to be fond of conspiracies.

            • BumbaT on 10/08/2020 - 01:02
              +1

              @kahn: he was trolling. His next twitter response was by the way we source all our lithium from australia

    • cloudy on 08/08/2020 - 19:33
      +1

      whats BBUS?

      • dcep on 08/08/2020 - 19:39
        +15

        BBUS = betting US stocks crash

        BBUS going down , if US stocks going up, vice versa

        geared at 2.2x ~

        don't fight the FED, money printer goes brrrrrrrr~

    • cktftw on 10/08/2020 - 10:42

      Same here BBUS and BBOZ total loss about 10k

      • DaddysBelt on 11/08/2020 - 13:31

        Glad I'm not the only one. Lesson learnt - don't fight the FED

    • TheCutter on 11/08/2020 - 13:09

      Good joke mate!
      We are called dumb money by the vultures who shill stocks.

  • [Deactivated] on 08/08/2020 - 18:40
    -1

    🤦‍♂️

  • megadeth on 08/08/2020 - 19:21
    +3

    Handed an acquaintance $2000 to give to my parents overseas but he pocketed it. Also bought $2000 worth shares in a company that bankrupted within a year. Several traffic infringements that costed a bit.

    • amazonaddict on 08/08/2020 - 20:34
      +5

      You know what? The more you lose, the more you become relaxed about it. I have felt that way. I am not stressed as I was when I lost a $5 bill long back. :)

  • SF3 on 08/08/2020 - 20:08
    +3

    Our presence in OzB tells us we are (mostly) an impulsive bunch 🤫, mainly emotional buying. A lot of us (I’m guilty too) being a sucker for neomania.

    I think a lot of people we see who succeed (win in the market) are mostly lucky, most will claim skills but we don’t see those who took the same approach but failed as a result. Survivorship bias, with those get rich quick scheme “winners”… if people have a sauce to success they don’t need to sell it to everybody, one would keep it to themselves to make more $$$, when they are making money from people subscribing to their products/programs, you do wonder about their motives.

    • amazonaddict on 08/08/2020 - 20:41
      +4

      Well though out. Fortunately, I have never bought any Quick Rich scheme courses. The youtube ads are full of them. however, I have almost pulled into this drop shipping scheme and bought a domain to sell toys from China But, could not convince myself to buy crap at a dollar and sell it at $10. But, others seem to be ok with it.

    • gromit on 12/08/2020 - 14:46
      +2

      true for some though I suspect there are a lot here like me as well. for me I monitor ozbargain for specific things I need/want to buy but can wait for the better price on them, sometimes for the interesting chats and for the competitions. I rarely if ever make impulsive/emotional purchases, would never be a sucker for a get rich quick scheme. Though for reasons you describe I hope my wife never finds OzB.

      I don't chase short cuts for winning, it is a long game, every dollar I save here is one more dollar I have earning me money elsewhere.

      • SF3 on 14/08/2020 - 23:18
        +4

        Here something from wikipedia:
        “Kiyosaki's main earnings come through franchisees of the Rich Dad seminars”
        Source https://en.wikipedia.org/wiki/Robert_Kiyosaki

        The “famous” Rich Dad poor Dad, his videos keep coming up in youtube recommendation 🤷‍♂️. I thought I should look him up.

        Make of it what you will - in terms of practice what you preach eh. 😐

  • follow on 08/08/2020 - 20:13

    50k mostly on puts…..

    • amazonaddict on 08/08/2020 - 20:46

      You lost $50k? Have you earned more on stock market over the years? Hope so.

      • follow on 09/08/2020 - 03:02

        no i only started in March. realised my mistakes but too afraid to trade now.

        • amazonaddict on 10/08/2020 - 08:36

          May be $50k is not a big thing. But, I would not have started with $50 k, may be $10k and grow that.

        • ihbh on 10/08/2020 - 14:06

          If only you had started 1 month earlier, you'd have a grin from ear to ear.

          • sangohan on 10/08/2020 - 22:07

            @ihbh: and people who have the capability to start buying puts 1 month before the drop won't have to come to ozb for bargains.

  • OldBugger on 08/08/2020 - 21:36
    +9

    I've always been a great saver. It comes naturally like many ozbargainers. But investing is another matter.

    In my first taste of investment, I got in the stock market, I bought $3k worth of shares in a gold mining company. It was a sure thing so my mates said. The stock price was on its way up and up.

    Knowing nothing about anything, I rang a broker to do the transaction for me. I remember him telling me on the phone, "That's a risky investment." That only gave me more confidence to go for it.

    Well, as soon as I placed my bets, that bloody stock price went south. It was uncanny. My mates pulled out soon after but I kept on thinking it is sure to make a turn. It never did. I eventually bailed out with $500 left.

    Many years later, I got the courage to invest again. This time in a home. A safe bet I thought.

    Well, as soon as I bought it, house prices dropped in the area and are still down 5 years later. Although I've almost paid it off, if I sold now, I'd be $100k worse off.

    • SF3 on 08/08/2020 - 22:04
      +2

      Interesting that you used the word “bet” when you bought the gold mining shares, when you said “investment” upfront. I think a lot of people get mixed up between investment vs speculation/bets/trading. I think we can all learn from such experiences, I hope your $3k at the time wasn’t too much i.e. can afford to lose.

      As for your house, assuming you bought it to live/long term use, vs speculative purchase? I don’t have a crystal ball so hopefully you’ll pay off your mortgage as it’s your house afterall :) rather than bought with intention to profit?

    • amazonaddict on 08/08/2020 - 22:12
      +3

      Haha, I used to think my bad luck brings the whole market down. But, the truth is I always hop on the bandwagon when it is already full an ready topple over. Anyways, the good thing is you will not be paying much on interest on the property, thus can hold off for while. Good luck

    • iamhurtin on 10/08/2020 - 15:58

      "Knowing nothing about anything"

      May I ask why you didn't bother doing any research?
      Or is it

      you consider a million dollars in cash just finance, te salute, Don Corleone'

  • [Deactivated] on 09/08/2020 - 01:31

    Paid my 1st place off and rented it out. Got another place I liked to live in with a
    mortgage. Can't negative
    the place later but at the time I only sold because it pessed me off.

  • Drj55 on 09/08/2020 - 09:05
    +5

    NOT buying that 3 storey Victorian terrace in Surry Hills in 2005 for circa $700k. That probably "lost" me 2 mill!

    But biggest real loss in one go - $10k in Blue sky shares 5 months before the Glaucus report explaining it was a house of cards.

    • amazonaddict on 09/08/2020 - 11:32

      Did you feel like the house was overpriced at that time? Why did you pass on it?

      • Jackson on 12/08/2020 - 23:37

        In my case it was across the road from 'the (houso) block', and the area at the time had an air of unsafeness about it (bothered the SO)

    • AustriaBargain on 10/08/2020 - 01:14
      +1

      Buy it now. Could be worth 10 mil in a few years.

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