HOW TO INVEST LIKE THE RICH

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Forbes on Twitter: "#Forbes400 richest in America: 1. Bill Gates 2. Jeff  Bezos 3. Warren Buffett 4. Mark Zuckerberg 5. Larry Ellison  https://t.co/PB9Eqtigtc… https://t.co/2Bi8C8eTqU"
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There is a relentless rising inequality in wealth ownership. In Rich Dad, Poor Dad, Robert Kiyosaki stated that the rich are getting richer and the poor are getting poorer. The gap between the rich and the poor is becoming wider.

This inequality comes from varying factors. The most resounding factor is that the rich do what the others don’t do. He explained further that the rich became rich because they invest in what the poor and the middle class don’t invest in.

Investment is building wealth by appreciation. Appreciation here refers to an increase in the value of an asset over time. The intent of investment is to create wealth for the future. It is action taken towards the hope of increasing future revenue.

The importance of investment in wealth building cannot be overemphasized. A lot of people know what investment is, but very few people (i.e. the rich) know exactly how to invest.

Frankly speaking, wealthy people do less “hard work” than most others because they have their money in several places working for them. It is a fact that 9/10th billionaires are self-made. Contrariwise, the non-rich folks prefer to keep their cash in their hands or in low return savings accounts. Even the few who invest, do it carelessly and end up incurring more loss than gain or no gain and no loss. Likewise, some people believe that Ponzi schemes are investments. That aside, the rich are rich (and are becoming richer) because they invest differently from the others.

Further speaking, it is worthwhile to note the differences in the investing behaviour of the rich.  

1. The Rich mindset

The mindset of the rich is their strength. Unlike the poor and middle class, they do not see investments as risks. Instead, to them, NOT INVESTING is a BIG RISK they cannot live with. What is the riskier is LACK OF FINANCIAL EDUCATION. The poor know nothing about HOW TO INVEST. The Rich, on the other hand, are LITERATE and EDUCATED INVESTORS.

They invest in their financial education. They are not just investors; they are intelligent investors. The rich dig deep and make thorough research. Unlike many others, they are not emotions or fear driven.

The rich don’t rely on their intelligence. So, they have a team of advisors who help them make the right investment moves. Unlike others, who hire brokers to invest on their behalf.

2. Not Speculators

Many so-called “investors” are not TRUE Investors, but SPECULATORS. This is more evident in stock trading, forex trading, binary options etc. Yes, speculators make lots of money, but they also lose it as fast as they make it.

Speculators invest mostly based on predictions of price highs and lows. TRUE investors (which the rich are) hardly speculate. They rely mostly on WELL-INFORMED Data on the assets they choose to invest in. There is a difference between investing based on mere speculations and investing with reliable knowledge.

3. Long Term Investors

Another important factor to note is their pattern of investing. Rich folks hardly invest in assets in order to sell off at a higher price within a short period of time. What they do mostly, is buy to own. That way, the assets generate passive income. Unlike others who mostly buy to sell/flip within a very short period, rich folks mostly invest long term.

4. Investment Plan

Investment plan helps to match your financial goals and objectives with your financial resources. It is a core component in financial planning. Remember that the rich surround themselves with advisors that help to keep them in check? One of their duties is to help in clarifying financial goals and objectives and how much resources should be poured into it as regards to an investment goal. Rich folks do not dive into an investment without adequate planning. This also alarms the importance of thorough research and knowledge building before investing.

5. Diversification and Sustainability

For the rich, owning shares in different sectors is important therefore, they do not streamline their investment portfolio. However, they do not invest in non-sustainable investments. They don’t invest in Ponzi Schemes. I repeat; they don’t invest in Ponzi Schemes.

Warren Buffet holds shares in Apple incorporation, Wells Fargo & Co, Bank of America, The Coca-Cola Company, Kraft Heinz etc. investment in Real Estate, Businesses, transportation, Miming etc.

Carl Ichan another great investor who is believed to have beaten Buffet’s track record, own investments in Apple, eBay, Netflix, Xerox etc.

Mr Joseph Safra, world richest banker with an estimated net worth of over $24billion.  To mention a few, some of his investments are in Banco Safra (Brazil’s eighth-largest bank), Safra National bank of New York, Real Estate in the USA.

These examples are to highlight that the rich own multiple diverse investment portfolios.

In conclusion…

INVEST LIKE THE RICH. START TODAY. START NOW!

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