The Secret to Getting Rich
As repetitive as it may seem, it is important for investors to realize there is only one way to get rich. Slowly.
Getting Rich Slowly
It shouldn’t come to a surprise to anyone that get rich quick schemes are still horribly popular even with the most intelligent investors. Everyone is looking for the best, quickest, and easiest way to make a buck, but the reality is if it were really that easy, everyone would be doing it.
Who Got Rich Slowly
Virtually everyone on the Forbes 400 (excluding inheritances and dotcoms) got rich slowly. They invested either time, capital or both to produce a product that people desired or to invest in a product that they thought to be desirable. A quick glance at the Forbes 400 shows us that very few successful people are born successful, and even fewer become successful quickly. Warren Buffett, for instance, has built his wealth over 45 years. Bill Gate’s Microsoft didn’t really make him rich until personal computers caught on with ordinary people. The list goes on and on.
Be The One Thing Lacking in The Market
If there is a shortage of anything, absolutely anything, in this world it has to be patience. Though the wealthiest members of the global community are all very different, they also have one key trait. They are patient. Sure, they are quick to enter new fields, but they wait years, even decades, before taking a profit. Going back to Warren Buffett (do I dare repeat he’s the greatest investor ever?)…Warren Buffett has sold only a few positions that he’s ever held. The remaining investments have been in the portfolio for literally decades, continuing to build wealth for Berkshire’s investors.
Markets Don’t Work Perfectly
Stock markets don’t move linearly, and its probably a good thing they don’t. Knowing this, however, we have to become smarter investors. By tapping into, or creating, a patient investment strategy, we’ll be sure not too sell too early, take profits before the big move, and miss out on the big days that really beef up a portfolio. Truly, there is no way to get rich other than to have patience.
This is so true. It isn’t very complicated but you still see so much energy spent trying to find shortcuts. If you save 10% of your income for retirement and 5% for other long term goals (house…) you will be in very good shape compared to other American’s. Many other countries do a much better job of savings. Too many people can’t seem to accept that it is pretty much as simple as that.