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 reality is that many investors are doubtless 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 possibly millionaire today, but definitely not the richest man on earth.
What he probably did then, is that he sold his talent to others:He created partnerships, where other investors put cash in it, and he would get no charge for the first 4% income, but would get half of 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 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 effective way is to leverage your talent and be your own master.
It is not the easy way, it needs time, faith, efforts, tenacity, failure etc...
Which is why it is best to start a business for passion instead of money, because money infrequently 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 reality is that many investors are doubtless 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 possibly millionaire today, but definitely not the richest man on earth.
What he probably did then, is that he sold his talent to others:He created partnerships, where other investors put cash in it, and he would get no charge for the first 4% income, but would get half of 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 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 effective way is to leverage your talent and be your own master.
It is not the easy way, it needs time, faith, efforts, tenacity, failure etc...
Which is why it is best to start a business for passion instead of money, because money infrequently comes in the first years, but instead after a long run.
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