(Backtest) Buy Google on Margin to Get Rich @Degen

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Before we start, feel free to listen to my video on this topic of building wealth using leverage instruments as an average income earner: πŸ‘‡

A simple path to wealth on a small salary

πŸ›‘ Disclaimer: Nothing in this post or any other Finxter material is financial advice. Significant returns often involve significant risks.

How Much Can You Save on a Normal Gov Salary?

A Few Words on GOOG stock

To deep dive into my current views on Google, check out this article on the Finxter blog:

πŸ‘‰ Google Making Billions of AI – The Investment Case for Alphabet

Strategy 1: Accumulate Google Shares

YearGOOGIncomeSavingsCum. SavingsNew GOOG sharesCum. GOOG sharesInvestments $
2015$26.79$56,000$11,200$11,200418418$11,200.00
2016$37.15$56,000$11,200$22,400301720$26,731.17
2017$38.94$56,000$11,200$33,6002881007$39,219.16
2018$52.42$56,000$11,200$44,8002141221$63,995.79
2019$50.83$56,000$11,200$56,0002201441$73,254.68
2020$67.08$56,000$11,200$67,2001671608$107,873.69
2021$87.88$56,000$11,200$78,4001271736$152,522.90
2022$144.48$56,000$11,200$89,600781813$261,956.81
2023$89.83$56,000$11,200$100,8001251938$174,070.85
2024$177.29$56,000$11,200$112,000632001$354,749.16

Strategy 2: Add Unsecured Debt to Buy Assets

Here’s the raw data for reference:

YearGOOGIncomeSavingsCum. SavingsNew LoansDebt OutstandingInterestLoan SettlementsNew GOOG sharesCum. GOOG sharesInvestments $
2015$26.79$56,000$11,200$11,200-$20,000-$20,000-$1,000-$4,000978978$26,200
2016$37.15$56,000$11,200$22,400-$20,000-$36,000-$1,800-$7,2005981,576$58,532
2017$38.94$56,000$11,200$33,600-$20,000-$48,800-$2,440-$9,7604882,063$80,352
2018$52.42$56,000$11,200$44,800-$20,000-$59,040-$2,952-$11,8083142,377$124,608
2019$50.83$56,000$11,200$56,000-$20,000-$67,232-$3,362-$13,4462832,660$135,220
2020$67.08$56,000$11,200$67,200-$20,000-$73,786-$3,689-$14,7571902,850$191,203
2021$87.88$56,000$11,200$78,400-$20,000-$79,028-$3,951-$15,8061302,981$261,933
2022$144.48$56,000$11,200$89,600-$20,000-$83,223-$4,161-$16,645723,053$441,029
2023$89.83$56,000$11,200$100,800-$20,000-$86,578-$4,329-$17,3161063,159$283,764
2024$177.29$56,000$11,200$112,000-$20,000-$89,263-$4,463-$17,853503,209$568,925

Strategy 3: Buy Google Stock on Margin

And the raw data, for reference:

YearGOOGIncomeSavingsCum. SavingsNew LoansDebt OutstandingInterestLoan SettlementsNew GOOG sharesCum. GOOG sharesInvestments $Total marginNew Margin LoanNew GOOG shares (from Margin)Total GOOGTotal InvestmentsTotal Liabilities
2015$26.79$56,000$11,200$11,200-$20,000-$20,000-$1,000-$4,000978978$26,200$7,860$7,8602931271$34,060.00-$27,860
2016$37.15$56,000$11,200$22,400-$20,000-$36,000-$1,800-$7,2005981,576$58,532$17,953$9,7002612130$79,130.94-$53,953
2017$38.94$56,000$11,200$33,600-$20,000-$48,800-$2,440-$9,7604882,063$80,352$25,003$6,1531582776$108,096.79-$73,803
2018$52.42$56,000$11,200$44,800-$20,000-$59,040-$2,952-$11,8083142,377$124,608$38,633$12,3792363326$174,336.14-$97,673
2019$50.83$56,000$11,200$56,000-$20,000-$67,232-$3,362-$13,4462832,660$135,220$42,498$1,934383647$185,373.75-$109,730
2020$67.08$56,000$11,200$67,200-$20,000-$73,786-$3,689-$14,7571902,850$191,203$59,486$14,8632224059$272,253.21-$133,271
2021$87.88$56,000$11,200$78,400-$20,000-$79,028-$3,951-$15,8061302,981$261,933$81,554$19,0942174406$387,209.97-$160,583
2022$144.48$56,000$11,200$89,600-$20,000-$83,223-$4,161-$16,645723,053$441,029$136,386$50,7543514829$697,745.03-$219,609
2023$89.83$56,000$11,200$100,800-$20,000-$86,578-$4,329-$17,3161063,159$283,764$91,948-$51,257-5714365$392,119.09-$178,527
2024$177.29$56,000$11,200$112,000-$20,000-$89,263-$4,463-$17,853503,209$568,925$175,275$78,7294444859$861,506.28-$264,538

Recap

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