How to be rich
Reading Warren Buffett autobiography will let you know precisely how he became rich, and one of the richest man in the world.
Most individuals believe it's usually because he's such a great investor, 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 companies as a child, and he quickly proved gifted with that, making his first thousands of greenbacks by buying and leasing flipper machines...
Then when he changed into a great financier, reading Benjamin Graham book "The Intelligent Investor", he searched for methods 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 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's how he started and leveraged his new business:More and more investors trusted him and invested money, and he would get half the profit of it above 4%
That's the reel snowball effect!
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 isn't the simplest way, it takes time, faith, efforts, perseverance, 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 autobiography will let you know precisely how he became rich, and one of the richest man in the world.
Most individuals believe it's usually because he's such a great investor, 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 companies as a child, and he quickly proved gifted with that, making his first thousands of greenbacks by buying and leasing flipper machines...
Then when he changed into a great financier, reading Benjamin Graham book "The Intelligent Investor", he searched for methods 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 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's how he started and leveraged his new business:More and more investors trusted him and invested money, and he would get half the profit of it above 4%
That's the reel snowball effect!
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 isn't the simplest way, it takes time, faith, efforts, perseverance, 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.