How to Check a Broker in Bali: Ask If They Rent a Scooter and for How Much β a Simple Way to Assess Financial Literacy
AB
Andrei Balinsky
Founder of Balinsky
"- How can an investor quickly check a brokerβs competence in Bali?
- Ask what price the broker rents their scooter for π ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ
Ideally, ask a follow-up question: how long have you been renting it?ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ
If they rent and have been doing so for a long time, it means they do not even count their own money. ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ
Renting an NMAX costs β 2 million per month, or 24 million per year. ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ
A new NMAX costs β 36 million and pays for itself in 6β7 months. After that, you ride almost for free.ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ
After a year, you sell it for around 30 million. Your real expenses for the year are 7 million, or about 580 thousand per month instead of 2 million in rent.ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ
After two years, you sell it for 25 million. Expenses are 13 million, which is 540 thousand per month instead of 2 million.ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ
After three years, you sell it for 21 million. Expenses are 18 million, which is 500 thousand per month instead of 2 million.ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ
The difference is 3β4 times. If a person wastes money on such a basic thing as a bike, they will waste your investments the same way.
"ββββββ ββββ βββββ β βββββββ ββββ β ββββ βββ ββββ β ββ ββ βββ βββββββββββββ βββββββ β βββββββ β ββ ββ βββ βββββ ββββββββββββ ββββ βββ βββββββ βββββ β ββββ ββββββ βββββ ββββββββββββ ββββββββ βββββββ ββ ββββ βββ ββββββββββββ βββ ββββββββββββ ββ