Featured Image Credit: Oscar Wong / Getty
A Reddit user has shared how they turned $200 into helping manage $200 million with no finance background.
We've all heard the headlines about how investing in Bitcoin a decade ago would have made us rich.
While some have indeed become cryptocurrency billionaires, other stories have ended in tragedy.
Now, one social media user has shared their nine-year investing journey, going from having 'no money' to co-managing a $200 million fund, offering some hope that financial success is achievable from nothing.
Advert
In the summary of their Reddit post, they wrote: "Started with no money, no finance background, and no connections. Spent 8 years learning, grinding, and pivoting—ended up co-managing a $200M fund.
"Sharing lessons from that journey for people in their 20s who want to get serious about investing."
Before getting into it, they admitted they're not 'some guru and not that successful,' but wanted to help others realise it's 'not too late' to start investing.
Breaking down their journey year by year, they explained that in year one, they 'graduated with basically nothing, 'meaning 'no car, a few hundred in my checking account, and no job.' Soon after, they managed to secure a pharmaceutical role paying around $70,000 a year and decided to use their spare time to learn about investing.
During year two, they read blogs and articles, networked with people offline, found mentors, and joined an investing group to learn the basics. As a result, the Redditor explained they found the role of an 'equity research analyst' and decided to switch careers.
After extensive studying, they gained admission to a 'decent school with a $90k scholarship' by year three. Then in year four, they landed a part-time analyst position and met their future business partner, 'absorbing investing knowledge like a sponge.'
According to the Redditor, professors and classes 'weren't helpful,' but the three years of self-teaching gave them the knowledge to 'get ahead.'
In year 5, the investor explained that they had to start over after graduating because their checking account was 'back to $0 again.'
The breakthrough then came in year seven, when the 'grind paid off' and they broke into equity research. After reconnecting with their business partner, they began growing their portfolio.
"We two grew our AUM from $2.5M to $200M organically—no outside fundraising. It was the result of everything we had accumulated over the years—knowledge, discipline, mistakes, and conviction," they wrote. "We once joked that in managing that portfolio, we basically used everything we had ever learned. That year, we both had the quiet realization: we can survive this market."
In years eight and nine, the fund 'closed' due to their 'partner’s personal reasons' but still received their share of the profits.
"Now I’m exploring other things, but still managing my own portfolio—and still learning," the investor claimed.
Sharing their advice for others, they added: "You don’t need to spend as many years as I did to build your circle of competence and investing philosophy—though understanding how institutional investors think definitely helps."
