This is the first episode in a series of 80/20 investors. We would like to give you a new generation of potential role models. Individuals, who have intuitively understood the value of the 80/20 principle to investing, but also aim to have a balanced and meaningful life at the same time. They create value and follow their passion and only occasionally play the stock markets or very conservatively. Most of them are extremely risk averse, but at the same time take calculated risks when it comes to investment opportunities they understand something about. Most of the time, that means establishing their own businesses and growing them over time by reinvesting cash flows.
In this episode, we welcome Stefan Klump, a “forefather” of the Google Self-driving project (Stanford University: Class of 2008), entrepreneur, and adventurer. Currently, he resides in Eastern-Europe exploring several countries in his custom-made camper-van while operating several businesses and managing his investment portfolio.
Business returns vs stock market returns
- Own businesses: 10-30% per MONTH
- Bugfender growth past 12 months: 556%
- Vs. Index Funds – 7 to 8% per YEAR
Buying random stocks and experiencing painful losses
- GPRO (GoPro)
- DDD (3D Printing)
Key lessons learned:
- Not to buy random stocks that he has neither a competitive edge or control over
- Rather reinvest cash flow in own businesses as long as there are opportunities
- To favor safe and transparent investment products, such as Index Funds as cash placeholders
- Past mistakes very valuable lessons
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BitCoin Mining and cashing out