Does the "Walk-Away Number" Exist?
Anyone who's followed my posts knows that the dollar isn't the primary motivator for me in my career, it's always been about winning. Some people won't agree with that, others will... and I was having this conversation last night with some buddies about the legendary "walk-away number," the amount you'd need to have today to just quit working forever.
One said $10M, another said $50M, I think I even heard a $200M in there... but problem was, I could never give a legitimate answer. I'd still want to work if I got handed a check for a billion dollars tomorrow. I don't know what I'd do with myself all day if I wasn't working... it doesn't make sense to me to sit around and play golf all day, go on vacations, sit at the club, etc. That sentiment might change in 15 years, but probably not any sooner.
So monkeys - do you actually have a walk-away number? Or has it never been about the money? Hoping I'm not the only one who just loves playing the game.






I live in Texas, so $5M
I live in Texas, so $5M
For me it is not so much a
For me it is not so much a fixed number as much as the fulfillment of a particular set of conditions:
Once you make to be the senior partner of a HF or PE firm with considerable AUM and manage to do well for a few years, then you can gradually phase out your role at the firm and delegate most of the day to day operations of the firm to others. Your considerable carried interests/ownership stake at the firm will assure that you will continue to make very good money even after you stopped working for the firm full time.
A classic example would be the case of Candidate Romney. By his own admission, for the last 4 + years Romney has been basically "unemployed" as he was running for president the whole time. Still he managed to make 20mm+ last year thanks in the most part to his ownership stake and carried interests at Bain. This situation will continue so long as Romney holds on to his carry and Bain continues to do well, which it has been.
So to answer your question, no, for me a walk away number does not exists. I am not all that concerned about having a certain number of golden eggs in my storage bunker. For me it is all about making sure that others are taking good care of the goose to make sure that it stays alive and well and continues to lay more golden eggs for me year after year, ad infinitum...
...well, he's no use to us if Detroit is his idea of a small town!
brandon st randy: goose is
goose is alive
Nah. Goose died. Maverick cried.
50 million for me. - But
50 million for me. - But thats not a stop working number, that's just a number where I'll just slow down and look into other interests in my life.
If you do what you love,
If you do what you love, which is the key that walk away number just really becomes when you get fed up with commute or get up with company. Because doing what you love eliminates the number. I think 10 million for a good fixed income off of bonds(keeps increasing dollar amount due to interest rates). Then I need another 10 million to just blow it on whatever so 20 million and fed up at work. Hence I can see myself working for a lot longer
$11 million
$11 million
Ever since I was in middle
Ever since I was in middle school, it has been $100mm by 35, and then $10bn long term.
"There are three ways to make a living in this business: be first, be smarter, or cheat."
Sandhurst: Ever since I was
Ever since I was in middle school, it has been $100mm by 35, and then $10bn long term.
How old are you now? And where are you at? (don't try and pussy out and say that's private). No one knows who you are so it's still private in the grand scheme of things. P.S. - Don't b.s. - no matter what your number is its not going to impress me, or make me think more poorly of you. Just curious.
Sandhurst: Ever since I was
Ever since I was in middle school, it has been $100mm by 35, and then $10bn long term.
This is hysterical...
I hate victims who respect their executioners
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You guys must think you'll
You guys must think you'll head major hedge funds in the future. Most of you won't.
Eurodealer: You guys must
You guys must think you'll head major hedge funds in the future. Most of you won't.
Which is why most of us wont be walking away
Unless that amount will let
Unless that amount will let me start my own company, or a fund, or something, I don't think there's a walk-away number. You're not the only one, man.
Who are you going to believe, me or your lying eyes?
JoshFi7: Eurodealer: You
You guys must think you'll head major hedge funds in the future. Most of you won't.
Which is why most of us wont be walking away
Bingo.
See my other WSO blog posts
Yes, but the number is
Yes, but the number is constantly changing based on our understanding of the economy and our financial needs.
My walkaway number started at $500K. It's grown. And we also have soft numbers. When you get $X in the bank, you get less hungry. In general, if you have $3X in the bank, you're less willing to pull 100 hour weeks for $X.
Think about what you really need to be happy. Happiness tends to be maximized at $70K/year for most people (ok, maybe $250K/year in Manhattan.) After that, free time is what makes you happy.
I echo ANT's quote that "what other people think doesn't buy a Ferrari", but the most pathetic thing in the world is a miserable Ferrari owner. Don't be that guy. Have a plan for when you'll be content.
Right now, my plan is whatever will pay for that 60 acre farm on Lake Michigan with a '66 Ford Mustang GT Convertible (Red).
Work hard, play hard.
More. It's about the game,
More. It's about the game, and the money makes the game much more interesting.
$1.2 million
Abdel: $1.2 million Jesus
20mm. Doesn't mean I'd stop
$100MM would do it for me...
"A man generally has two reasons for doing anything. One that sounds good, and the real one." - J.P. Morgan
8 mil * # of my immediate
hot1590: 8 mil * # of my
I hate victims who respect their executioners
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Sandhurst: Ever since I was
$75 million I would buy one
The average Harvard MBA grad
orangejulius: The average
BlackHat: So monkeys - do you
orangejulius: What good is
I hate victims who respect their executioners
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Boothorbust: orangejulius:
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orangejulius: Anything in the
In headaches and in worry
Vaguely life leaks away
And Time will have his fancy
Tomorrow or today.
BVMadden: More. It's about
10MM. Easy decision.
$50 Million.. throw it into a
drexelalum11: Boothorbust:
dest149: BVMadden: More.
http://www.forbes.com/sites/s
Sandhurst: Ever since I was
Connor: $100MM would do it
Really people? I would expect
The number doesn't actually
What if one doesn't have a
The Four E's of investment
"The greatest Enemies of the Equity investor are Expenses and Emotions."- Warren Buffet
gammaovertheta: The number
...well, he's no use to us if Detroit is his idea of a small town!
brandon st
gammaovertheta: The number
If your dreams don't scare you, then they are not big enough.
"There are two types of people in this world: People who say they pee in the shower, and dirty fucking liars."-Louis C.K.
Enough to run a hedge fund
You have your way. I have my way. As for the right way, the correct way, and the only way, it does not exist. - Friedrich Nietzsche
wolverine19x89: gammaoverth
kmess024: What if one doesn't
Now to say stop working
20 MM will do it for me.
- Strategyard.com
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I actually got asked what my
gammaovertheta: wolverine19
...well, he's no use to us if Detroit is his idea of a small town!