How to be rich
Reading Warren Buffett biography will tell you exactly how he became rich, and one of the richest man on the planet.
Most people believe it is because he is such a great financier, and so did I before I read his autobiography.
But the truth is that many stockholders are probably as good as Warren Buffett, but none is as rich as he is. So what made the difference?
Well before being a great investor, W.Buffett is a great entrepreneur.He started his first enterprises as a child, and he quickly proved gifted with that, making his first thousands of dollars by buying and leasing flipper machines...
Then when he turned into a great financier, reading Benjamin Graham book "The Smart Investor", he searched for techniques to leverage his talent.
If he had invested only his money, he would be likely millionaire today, but certainly not the richest man on earth.
What he did then, is that he sold his talent to others:He made partnerships, where other speculators put money in it, and he would get no fee for the 1st 4% earnings, but would get 1/2 the margin above.
That is how he started and leveraged his new business:More and more backers trusted him and invested money, and he would get 1/2 the profit of it above 4%
That's the reel snowball cascade!
So the unvarnished truth about this story is that being a good financier won't make you rich, it's actually mandatory but it takes time. It's still the snowball effect with compounds interest, but it is the slow way.
The effective way is to leverage your talent and be your own master.
It's not the simple way, it will take time, faith, efforts, persistency, failure etc...
Which is the main reason why it's advisable to start a business for enthusiasm instead of money, because money seldom comes in the first years, but instead after a long run.
Reading Warren Buffett biography will tell you exactly how he became rich, and one of the richest man on the planet.
Most people believe it is because he is such a great financier, and so did I before I read his autobiography.
But the truth is that many stockholders are probably as good as Warren Buffett, but none is as rich as he is. So what made the difference?
Well before being a great investor, W.Buffett is a great entrepreneur.He started his first enterprises as a child, and he quickly proved gifted with that, making his first thousands of dollars by buying and leasing flipper machines...
Then when he turned into a great financier, reading Benjamin Graham book "The Smart Investor", he searched for techniques to leverage his talent.
If he had invested only his money, he would be likely millionaire today, but certainly not the richest man on earth.
What he did then, is that he sold his talent to others:He made partnerships, where other speculators put money in it, and he would get no fee for the 1st 4% earnings, but would get 1/2 the margin above.
That is how he started and leveraged his new business:More and more backers trusted him and invested money, and he would get 1/2 the profit of it above 4%
That's the reel snowball cascade!
So the unvarnished truth about this story is that being a good financier won't make you rich, it's actually mandatory but it takes time. It's still the snowball effect with compounds interest, but it is the slow way.
The effective way is to leverage your talent and be your own master.
It's not the simple way, it will take time, faith, efforts, persistency, failure etc...
Which is the main reason why it's advisable to start a business for enthusiasm instead of money, because money seldom comes in the first years, but instead after a long run.
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