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.
The majority of people believe it is often 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 became a great investor, reading Benjamin Graham book "The Clever Investor", he searched for ways to leverage his talent.
If he had invested only his money, he would be probably millionaire today, but not the richest man on earth.
What he did then, is that he sold his talent to others:He made partnerships, where other stockholders put money in it, and he would get no fee for the 1st 4% revenue, but would get half 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 is the reel snowballing effect!
So the reality about this story is that being a good financier won't make you rich, it's certainly obligatory but it needs time. It's still the snowballing effect with compounds interest, but it is the slow way.
The fast way is to leverage your talent and be your own boss.
It is not the easy way, it needs time, faith, efforts, tenacity, failure etc...
Explaining why It is best to start a business for keenness rather than cash, because money rarely comes in the 1st years, but rather 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.
The majority of people believe it is often 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 became a great investor, reading Benjamin Graham book "The Clever Investor", he searched for ways to leverage his talent.
If he had invested only his money, he would be probably millionaire today, but not the richest man on earth.
What he did then, is that he sold his talent to others:He made partnerships, where other stockholders put money in it, and he would get no fee for the 1st 4% revenue, but would get half 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 is the reel snowballing effect!
So the reality about this story is that being a good financier won't make you rich, it's certainly obligatory but it needs time. It's still the snowballing effect with compounds interest, but it is the slow way.
The fast way is to leverage your talent and be your own boss.
It is not the easy way, it needs time, faith, efforts, tenacity, failure etc...
Explaining why It is best to start a business for keenness rather than cash, because money rarely comes in the 1st years, but rather after a long run.
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