The secret to becoming a millionaire in Australia

….is to invest three million dollars into a business built by a real estate “entrepreneur”.

Exhibit 1 McGrath Estate Agents

John “Million Dollar Agent” McGrath has presided over one of the most classic examples of wealth destruction of our time. I think the people we should feel most sorry for are those who bought into the bull traps in 2016 and 2017. It must have been like that exhilarating feeling a surfer gets as they catch a large wave but then realise they’ve got the angle wrong and are shooting to the bottom rather than gracefully gliding across the face of the wave.

Exhibit 2 – Yellow Brick Road

It would seem others have been paying attention to Mr. Bouris too:

ASX suspension? What ASX suspension?! Yellow Brick Road’s Mark Bouris has spent the week since the business failed to lodge first-half accounts doing what he does best. That is, self-promotion.

Ah, self-promotion. That’s a common factor, isn’t it?

Those who’ve spent some time in the UK might recognise the type:

Bill’s Opinion

Australia entered a per capita recession this week. Property prices have been on the slide since September 2017.

The two examples above are both completely reliant on the health of the real estate market to return a profit. Which direction do we feel these share charts are going in the near to mid-term? At the time of writing, Yellow Brick Road shares are on their 4th business day of suspension.

In the words of Bob Dylan, “just when you think you’ve lost everything, you find out you can always lose a little more“.

4 Replies to “The secret to becoming a millionaire in Australia”

  1. These are great examples of insider selling. They cashed out on the way up, and left the suckers carrying the downside risk. It’s one of the key indicators for a coming correction. Although it has taken a little while for each of these businesses. It doesn’t really matter that they were good or even mediocre business managers, the cycle was going to get them eventually.

    I am a bit surprised more fintechs haven’t listed in the last few years, but then Prospa shows what can go wrong.

    1. “… the cycle was going to get them eventually”.

      As witnessed by Bouris’ really quite pathetic statement to the ASX last night. “Never seen conditions like it”, is such a beta male thing to say. Everyone told you it’s a cycle, you carried on as if it was uni-directional.

      1. That is to manage his cognitive dissonance, and appease shareholders. He has cashed out – mostly when he sold Wizard. This was just a plaything, with little more than his reputation on the line. Anyone who has done The Apprentice has little regard for their reputation, so he has lost nothing.

        1. Of course. They always get out with more than enough for the rest of their lives.
          Anyone hoping for retribution or redemption isn’t paying attention.

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