Lets put it this way.
When I have followed the advice I laid out in this thread years ago, I made money. When I tried to speculate, I have made AND lost money.
One thing you have to understand is that if you are a true entrepreneur, there is no such thing as failure. No matter how bad things get, you will always have options.
I am all but out of real estate, and I am getting ready to possibly exit or scale down my retail operation. I have a great concept, but I'm not going to sit on it while the economy tanks for the next couple of years.
I am actually getting involved in a new business that has HUGE profit potential. I am producing informational DVD's and developing a line of "cosmetics". Not cosmetics per se, but I'm not going to go into detail for privacy reasons. Let's just say that I produce the product for $2-$2.50 and sell it for $16-$17. Lots of upside.....
Great post, BTW. Pretty much sums up the current bloodbath. Many, MANY millions will be made in the next ten years due to this recession (this is why the rich get richer....they are buying when nobody else has money). Money changes hands. Make sure it's coming INTO yours.
i think if this recession has shown anything, its as you pointed out, we found out the hard way what industries and business are truly recession PROOF.
i know carpenters and construction guys who were making big bucks but are now out of work or had to change fields. a diesel truck mechanic whos entire shop was laid off, except the owner who is now doing the majority of work himself. a good friend who worked for one of the top aftermarket wheel companies in the US - he was an operations manager making the big bucks... then the auto market tanked and it got so bad at the end that his options were either leave, or get demoted to working in the shop. he now works in another field.
heck, i have another friend who was trying to get onboard with the fire dept. as if it wasnt hard enough already to do that, he just found out that on top of freezing up the applications/new hires, they may even be cutting back on some departments! growing up were taught that working for the state or city is one of the most job secure positions you can have... and then a recession hits and even those jobs arent truly secure.
when times get tough, peoples priorities change. it becomes survival time. they now cannot justify spending an extra $2,000 for custom wheels. they decide to wait on having their house remodeled. they realize that spending $4 bucks a day for StarBucks adds up to over a $100 dollars a month, which might be better put towards putting food on the table or clothes on their childrens back.
people shift from focusing on the things they WANT to the things they NEED. the basic, important things both short term - food, place to live, good pay, decent clothes/cosmetics, reliable and practical transportation, etc... as well as the long term - visits to doctors and whatnot for health, planning for childrens college, personal retirement or other very important financial services, etc.
during these tough times, certain industries go on the backburner. but others dont. str8up i agree with you %100 - there ARE recession proof businesses out there. the goal would be as you said, to find and take advantage of the opportunity thats there. i myself am involved in the money business... and among other things, the baby boomer generation - which has shaped the world as it moved thru each generation of their lives - is now shifting to their retirement years. the stats are available online.. this is the greatest wealth transfer of all time. trillions of dollars will be changing hands over the next 10-15 years, and those who are in the field have an opportunity to help a lot of people move their money to the right places, and make a great living in the process. and trust me when i say that there is a GREAT DEMAND for trustworthy, hardworking people to help accomplish this.
in my eyes, a J-O-B offers the same kind of security as a maximum security prison. now more than ever, people really need to think, work and live for themselves. i grew up watching my parents work for others, always just making enough to get by. my dad, after 17 years with the lumber company, he was laid off. why? the company was downsizing 'cause of up and coming chains like home depot, lowes, menards. staying in the field, he had to take nearly %50 pay cut because the new thing was to hire young, inexperienced guys to work in these places. did my dad make a mistake by staying with the lumber company for 17 years? HIS dad, my grandpa, worked for that same company for 25 years after immigrating to the US. he worked there, made a good enough living to take care of his family, retired with his pension and was comfortable. my dad was just doing what he saw his dad do to take care of the family.
i would say that now more than ever before, it should be clear that if you want TRUE job security, you have to position yourself in a recession proof market where there is demand for your product/service, and BUILD a business. and i dont just mean self-employed, either - think of self-employed as employed all by your self. meaning if you get sick, or if you dont make a sale or have a rough day, you dont get paid. think BIG - building a business with many people working with you, and for you. making not just personal profits but OVERRIDING a team, an organization. a business that runs and makes YOU money not just while youre workin' it, but also while you eat. sleep. spend time with family. go on trips. do the things that make you exciting and satisfied with life.
i would encourage everyone to do as youre doing str8up. you have great business mindset, thinking outside the box. more and more people need to understand that instead of punching other peoples clocks, making other people rich while we slave away, we need to be working for OURSELVES. making our own money. taking our financial independence into our own hands.
that is the solution to all market conditions.
-SLB
but i feel i have to ask some questions of you in order to prove your knowledge in my mind. i do plan on buying that book. but rather than get involved in turning around real estate (which in my limited knowledge means contracting out the work to fix up the properties, but i dont know. i dont have any knowledge of that) it seems like it would be more prestigious and i would feel better about myself in general for obtaining an md or that kind of thing. im having a real hard time keeping myself from asking you how much money you have or what your net worth is. just so ya know. 
