Questions about profit?

Question

I heard from friend that a person he knows invested 250,000 dollars on to some Chinese company. After a year he was able to walk off with 5 million dollar after tax. How is this possible? What kind of stock can grow 20-30X greater in a year?

also what is faster to make money real estate or stock?

Answer 1

You can get that type of return if you use leverage, such as options.  Margin also supplies leverage, but is usually limited to 2-to-1.

Answer 2

there are businesses that can yield that much, but you need to verify from your friend if such was a genuine deal.

Answer 3

Some Chinese stocks did extremely well in 2007.  For example: BIDU, LFC, CHL, CEO.  These stocks doubled and tripled.  I don't know of any Chinese stocks growing 20-30X, but if you had correctly invested in any of the options for the companies mentioned you could have turned $250,000 into $5,000,000.  With options you're leveraging your money so when a stock rises or falls 10% you may gain (depending on which direction you are betting on) 50-100%.

Be very careful when investing in the stock market.  Investing in the stock market requires knowledge of the markets and complete control of your emotions.  Do lots of reading and paper trading before putting any of your hard earned money down.  Markets go up and down and there will be plenty of opportunities to make money.  Don't try to earn lots of money all at once.  Shoot for 10% earnings consistently and you'll reach your goals.  Don't be greedy!

I have made money in the stock market and believe one can make money in it faster than in real estate.

Answer 4

Current China Market is not stable. You might want to check first.