Where have the dumbest/laziest people made the most money?

[netnet]

Although the topic header is a bit obnoxious, my son asked me this at dinner this week. His question actually was more specifically,

 

  Dad, where have the laziest people you know made the most money other than inheriting it? 

  My response was 'that is a very interesting question, but you still need to work hard (and marrying well can be hard work too!)'.

 

However, I am broadening the question to dumbest and laziest people.  My experience has been that the leverage of a rising real estate market was good.  (At one time California RE was below average price in the US, so buying with debt and holding on was a very 'lucky' no-brainer.  More specifically, you had a state with great climate, a long history of net (in) migration and cheap real estate.)

 

In Washington D.C., I know people who bought in the 70's who said that in other cities people may move to the suburbs, but there was zero probability of the Federal Government moving most agencies to the suburbs, proximity is power and the White House and the Congress are not moving.  The new urban movement added impetus to their original thesis and compounded their gains.

 

In times past, I know that well connected, but dim Ivy Leaguers went to finance and did well, but those days  are long gone! (Trump era, graduating in the 50's and 60's.)

 

Sales in high ticket growing markets also comes to mind. On a relative basis, the sales people at say Cisco or Google, probably are not as 'smart' as the engineers, which is not to say they are dumb in the least, and even so, it is hard to be lazy in those jobs!

[gfp]

crypto currencies come to mind

[hillfronter83]

Chinese real estate in last 10-20 years.

[Jurgis]

In corrupt countries you get cushy govt job through family connections and then do nothing. Or even better collect bribes.

 

Though unless country is very corrupt or small, this won't get you into top 1% nowadays.

[Lakesider]

Index funds?

[wisowis]

Canadian real estate

Weed stocks

Bitcoin

[bizaro86]

In corrupt countries you get cushy govt job through family connections and then do nothing. Or even better collect bribes.

 

Though unless country is very corrupt or small, this won't get you into top 1% nowadays.

 

I was on a saferi in Tanzania riding in a Land Rover up a steep hill. The road was entirely washboarded out. There was a crew of men on the side of the road filling in the drainage ditch beside the road with clay. I remarked to my wife at the time that they were going to make the road even worse, as now when it rained water would drain down the road instead of the ditch. The driver of the safari said it was likely a make work project.

 

Now, I'm not sure what connections those people had or how much they were getting paid. But they were all working when I drove by (as opposed to the stereotypical one working three watching), and looked like they were working hard. It was ~40 degrees C (105 F or so). I've often thought about that, because I think it's the perfect picture of being born in the right place.

 

I don't have any political power and have never used a political connection, but I was born in Canada, got a degree, and earn my living sitting down in climate controlled comfort. Those folks were apparently connected enough to get a "good" government job, and do backbreaking work in the hot sun. I wouldn't want to trade. I also don't think I'd prefer to get a government contracts through influencing a corrupt regime in a third world country, even if it was more lucrative. Seems like it could be hazardous to ones health...

[bizaro86]

Charlie Munger told a story about this at the last BRK annual meeting. They're talking about why the electronic parts distributing business is so good, but I think it applies to your question as well.

 

Charlie?

 

CHARLIE MUNGER: Yeah, it’s a wonderful business because it’s so difficult to do that competitors don’t want try it. When I lived in Omaha there was a man who lived in great prosperity and almost no work. And his business was gathering up and rendering dead horses. And he never had any competitors. (Laughter)

 

He used to come up to the Omaha Club and start drinking about 11 in the morning. It was not a difficult business. But nobody ever crowded him with new competition.

 

And very few people want to distribute zillions of electronic parts that are worth a nickel each. It’s very complicated.

 

And of course that business is terribly good at it. And it keeps getting more and more of the same. So you’re right. It’s a huge growth business which is sort of the electronic equivalent of gathering up and rendering dead horses. (Laughter)

 

WARREN BUFFETT: Imagine keeping track of close to a million different items, you know, with very small values attached to them and getting them out to your customer fast because they want them fast, all over the world. You know, and those things are not easy to manage. I mean, yeah.

 

CHARLIE MUNGER: And staying in stock on so many items. It’s very complicated. And that business is very good at it.

 

WARREN BUFFETT: Yeah, we’re luck —

 

CHARLIE MUNGER: And of course it’ll grow. The horses went away but these parts aren’t going to go away. (Laughter)

 

WARREN BUFFETT: Charlie made a profession of studying businesses where the owners could sit around and drink all day and have — (laughter) — he thought that was where we ought to be competing but — or buying.

 

CHARLIE MUNGER: My theory, Warren, is if it can’t stand a little mismanagement, it’s no business. (Laughter)

 

WARREN BUFFETT: Yeah and we’re testing that sometimes. (Laughter)

 

https://buffett.cnbc.com/video/2018/05/05/afternoon-session--2018-berkshire-hathaway-annual-meeting.html

[Jurgis]

In corrupt countries you get cushy govt job through family connections and then do nothing. Or even better collect bribes.

 

Though unless country is very corrupt or small, this won't get you into top 1% nowadays.

 

I was on a saferi in Tanzania riding in a Land Rover up a steep hill. The road was entirely washboarded out. There was a crew of men on the side of the road filling in the drainage ditch beside the road with clay. I remarked to my wife at the time that they were going to make the road even worse, as now when it rained water would drain down the road instead of the ditch. The driver of the safari said it was likely a make work project.

 

Now, I'm not sure what connections those people had or how much they were getting paid. But they were all working when I drove by (as opposed to the stereotypical one working three watching), and looked like they were working hard. It was ~40 degrees C (105 F or so). I've often thought about that, because I think it's the perfect picture of being born in the right place.

 

I don't have any political power and have never used a political connection, but I was born in Canada, got a degree, and earn my living sitting down in climate controlled comfort. Those folks were apparently connected enough to get a "good" government job, and do backbreaking work in the hot sun. I wouldn't want to trade. I also don't think I'd prefer to get a government contracts through influencing a corrupt regime in a third world country, even if it was more lucrative. Seems like it could be hazardous to ones health...

 

Well, you did not see really cushy govt jobs. But I get your point.  8)

[scorpioncapital]

Welfare.

[Gregmal]

I think the most people who fall into the category or dumb/lazy have been able to make good money in landscaping/construction/housing related gigs. Many of the lazy, comfortable silver spoon raised kids I knew who didn't want to get real jobs ended up doing variations of these things. Air duct cleaners, exterminators, landscaping specialists, mold/water damage remediation "specialists", general contractors, all more or less charge obscene prices for services that are neither hard, nor expensive. An exterminator is basically a guy with a GED and a generic $35 spray tank filled with $15 solution you can get at Home Depot. He charges $250... A power washing company charges you $400 for a guy with an IQ of 80 to hook up a $250 machine to your water supply and point it at your house. Gutter cleaners, driveway refinishing, tree removal... I guess this is why housing is so important to the economic ecosystem.

[augustabound]

Many of the lazy, comfortable silver spoon raised kids I knew who didn't want to get real jobs ended up doing variations of these things. Air duct cleaners, exterminators, landscaping specialists, mold/water damage remediation "specialists", general contractors, all more or less charge obscene prices for services that are neither hard, nor expensive.

 

If you think general contracting isn't hard then you've never done it. I spent years building up the skills in all aspects of the home to the point where I started building custom homes. It is hard.

 

Don't compare a general contractor to a duct cleaner or exterminator.

 

 

[rb]

Many of the lazy, comfortable silver spoon raised kids I knew who didn't want to get real jobs ended up doing variations of these things. Air duct cleaners, exterminators, landscaping specialists, mold/water damage remediation "specialists", general contractors, all more or less charge obscene prices for services that are neither hard, nor expensive.

 

If you think general contracting isn't hard then you've never done it. I spent years building up the skills in all aspects of the home to the point where I started building custom homes. It is hard.

 

Don't compare a general contractor to a duct cleaner or exterminator.

Also how are those not "real jobs"?

 

I called an exterminator to take out a hornet's nest on my property. Charged me $80. I paid him gladly. Either those are not real jobs or we don't have capitalism. In our societies set prices. If they're able to charge a high price is because the market determined that. Everyone is free not to hire them and take care of their own crap.

[Gregmal]

Many of the lazy, comfortable silver spoon raised kids I knew who didn't want to get real jobs ended up doing variations of these things. Air duct cleaners, exterminators, landscaping specialists, mold/water damage remediation "specialists", general contractors, all more or less charge obscene prices for services that are neither hard, nor expensive.

 

If you think general contracting isn't hard then you've never done it. I spent years building up the skills in all aspects of the home to the point where I started building custom homes. It is hard.

 

Don't compare a general contractor to a duct cleaner or exterminator.

 

Certain types of GC's operate like this. Homeowner calls about a new front door and a new deck. GC calls a specialist who does doors and windows, and a carpenter for the deck, and gets quotes, marks them up 30%, and gives invoice. Far different than the guy who spent 5 years in trade school and builds the door and deck himself.

 

These types of businesses IMO are easily where one without any qualifications or skill set could focus on and make a decent wage. I know a few tree removal guys. They work two days a week to make the $1200 they need too get by and then coast the rest of the time, turning down jobs so they can paddle board or go hiking.

[augustabound]

The 30% is compensation for his time and his contacts within the trades. He takes responsibility for scheduling and paying those trades. He will also get a better price than a homeowner calling a window company and a deck company individually because he has a relationship with them. A GC will also have more jobs down the line. Once a homeowner has a deck or windows they'll never call those companies again.

 

A legitimate contractor (and maybe that's your point) builds relationships with other trades getting better pricing and scheduling.  The GC would most likely get preferential scheduling for those jobs. A homeowner would have to wait longer for work to be done and when those trade come to the site when the GC says he needs them. A homeowner gets the trades when they say they're ready to show up.

 

And this I know from experience, having a GC will get your warranty work done. A homeowner usually gets the shaft if something goes wrong down the line whether it was a manufacturing defect or installation mistake. 

 

But again, these are legitimate contractors not some fly by night guy who takes your money and hires minimum wage labourers to do the work and once they have your money they're never seen again......

[LC]

middle management.

[John Hjorth]

... These types of businesses IMO are easily where one without any qualifications or skill set could focus on and make a decent wage. I know a few tree removal guys. They work two days a week to make the $1200 they need too get by and then coast the rest of the time, turning down jobs so they can paddle board or go hiking.

 

Greg, it reads to me like a business opportunity for you! [ : - ) ]

[Sharad]

1. Winners of frivolous lawsuits;

2. Winners of lotteries/slot machine jackpots;

3. People who married rich.

 

[DTEJD1997]

I am surprised nobody has mentioned the "education class".

 

Get two teachers/administrators together (married) in their early 30's making bank...with summers off, full pension, full health care...

 

Fast forward 10 years into their 40's...these guys are each making $100k+

 

OR what about tenured professors?  Some of them that I had the experience of interacting with were SHOCKINGLY lazy.  Teach 2 classes a semester...have almost no office hours...can't grade final exams on time...making $150k+ a year and almost can't be fired.

 

Some of the wealthiest/laziest/stupidest people I know are from the education class...

[bizaro86]

3. People who married rich.

 

I have not done this personally, but it does not seem like the easiest way to get rich to me.

 

OR what about tenured professors?  Some of them that I had the experience of interacting with were SHOCKINGLY lazy.  Teach 2 classes a semester...have almost no office hours...can't grade final exams on time...making $150k+ a year and almost can't be fired.

 

This yes. Raise research dollars, spend them on junkets attending conferences in exotic locations. Work 10 hours a week.

 

[rb]

Get two teachers/administrators together (married) in their early 30's making bank...with summers off, full pension, full health care...

 

Yeah man, teachers are killing it!  ::)

[DTEJD1997]

Get two teachers/administrators together (married) in their early 30's making bank...with summers off, full pension, full health care...

 

Yeah man, teachers are killing it!  ::)

 

here in Michigan, in a lot of jurisdictions, they most certainly are...this is what is not widely understood and one of the reasons why our infrastructure is crumbling around us.

 

What is ESPECIALLY EGREGIOUS is the amount of money they get and the results that are produced.

[rb]

Why don't you become a teacher then?

[DTEJD1997]

In my next life I probably will be.

 

At this point in my life, I am too old and have too much going on elsewhere.

 

I would MOST DEFINITELY recommend it for young people. 

 

If you do it right, you start work young.

 

You can get by with little student loan debt.

 

The courses of study of usually pretty easy.

 

You get health care.

 

You get holidays off.

 

You get SUMMERS off.

 

There are all sorts of ways to get more $$$$$.  Work after skool events (I knew a guy who gamed this).

 

You also get a pension.

 

Certainly there are parts of the country where teachers are paid adequately, OR even relatively poorly.

 

There was HUGE story on WJR today where there was a study/report put out that Michigan teachers make so little money that they have to work SECOND jobs to make ends meet.

 

To the credit of the journalists at WJR, they investigated the people who wrote/participated in this report.  Turns out 3 out of 4 of the teachers were making OVER $100k a year.

 

Kind of rings hollow that you have to work a second job when you are making OVER $100k a year with "Cadillac" benefits...Remember, Michigan can be an EXTREMELY low cost of living area.  You can EASILY buy a decent house for WELL under $100k a year.  You can even do this in the suburbs!!!

 

Kudos for the radio station taking the time & energy to expose this...

[meiroy]

 

 

Stocks.