What assets do the wealthy people have?
When we hear a question like this we first think: toys, investments, and hobbies. This is true and I will touch on this towards the end of this post.
But I will start with the mental assets of those who made their fortunes on their own.
Because of inflation, inherited money people (who did not pitch in to help grow the family business or fortunes) form only a small portion of the very wealthy.
Needless to say, there will be plenty of exceptions, but in my circle of wealthy individuals, I see the following intangible assets.
The First Asset is Common Sense
Wealthy people don’t fall for scams or investment deals that promise easy money. They correctly appraise the odds of success in a given venture and realize they must not fantasize or expect unlikely results.
For example, they get the customers first and don’t worry about extraneous matters like their office, their appearance, or their lack of diplomas/licenses. None of those things are necessary for successful wealth accumulation.
The Second Asset is Entrepreneurial Attitude
They realize that products and deals that are being “sold” or “marketed” to them are never as good as the products and deals they unearth from sources that are not actively marketed.
They are always on the lookout to find or create products and services that other people want, need, will pay for.
The Third Aset is Frugality
They never buy retail. The follow the rule: “Absolute minimum of consumer expenses”.
They always negotiate to buy their products/ingredients at below-market. Often looking for distress property, or buying when most people are depressed and selling.
When markets are topping out and everybody is saying “It doesn’t get any better than this”, they are liquidating and accumulating cash.
The Final Asset is Honesty and Dependability
They don’t promise what they can’t or won’t deliver on time and in accordance with all specifications agreed on. In this way, they have repeat business and repeat customers.
They leave crumbs on the table. In other words, the brokers or informants that helped them, get a smile on their faces in the form of a piece of the action or a commission.
This lack of greed and apparent generosity leads to future leads and future deals with established contacts.
After they made their pile and are old and retired like me — what do I do? I write about my experiences and mentor others on the way up. Keeps me busy and sharp.
The majority, however, will just quit working, go on cruises, take up golf, and engage in sensible philanthropic activities. They never just hand out serious money to people who beg for it.
Now to the rich people, I know who didn’t have to work for their wealth
They buy sports teams, exotic or rare animals like miniature horses and dogs, birds. etc.
They get into antique furniture, collector cars, etc.
In many cases, they sponsor charity events, establish charitable foundations to promote medical cures, education, religion, or sports they like.
There is no shortage of good causes. They may marry younger wives like movie stars or beauty contest winners.
I know very few very rich people who just travel, eat well and are devoted solely to hedonistic pursuits. Consequently, they are/were normally unhappy ones.
Therefore, some useful purpose in life seems to be necessary for most people — even the very rich.