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I love stocks of small companies, especially startupsThe reason is that I am an entrepreneur, not a corporate personI worked in large organizations, such as Standard Oil of California, the UMarine Corps, and Xerox Corp I enjoyed my time with those organizations and have fond memories, but I know deep down I am not a company manI like starting companies, not running them So my slock buys are usually of small companies, and sometimes I even start the company and take it public Fortunes are made in new-stock issues, and I love the gameMany people are afraid of small-cap companies and call them risky, and they areBut risk is always diminished if you love what the investment is, understand it and know the gameWith small companies, my investment strategy is to be out of the stock in a year My real estate strategy, on the other hand, is rolex watch to start small and keep trading the properties up for bigger properties and, therefore, delaying paying taxes on the gainThis allows the value to increase dramaticallyI generally hold real estate less than seven years
For years, even while I was with the Marine Corps and Xerox, I did what my rich dad recommended I kept my daytime job, but I still minded my own businessI was active in my asset column I traded real estate and small stocks Rich dad always stressed the importance of financial literacyThe better I was at understanding the accounting and cash management, the better I would be at analyzing investments and eventually starting and building my own company
I would not encourage anyone to start a company unless they really want toKnowing what I know about running a company, I would not wish that task on anyoneThere are times when chanel jumbo xl bag people cannot find employment, where starting a company is a solution for them The odds are against success: Nine out of 10 companies fail in five years Of those that survive the first five years, nine out of every 10 of those eventually fail, as well So only if you really have the desire to own your own company do I recommend itOtherwise, keep your daytime job and mind your own businessWhen I say mind your own business, 1 mean to build and keep your asset column strongOnce a dollar goes into it, never let it come outThink of it this way, once a dollar goes into your asset column, it becomes your employeeThe best thing about money is that it works 24 hours a day and can work for generations Keep your daytime job, be a great hard-working employee, but keep building that asset column
As your cash flow grows, you can buy some rolex diamond watch luxuriesAn important distinction is that rich people buy luxuries last, while the poor and middle class tend to buy luxuries firstThe poor and the middle class often buy luxury items such as big houses, diamonds, furs, jewelry or boats because they want to look richThey look rich, but in reality they just get deeper in debt on creditThe old-money people, the long-term rich, built their asset column first Then, the income generated from the asset column bought their luxuriesThe poor and middle class buy luxuries with their own sweat, blood and children's inheritance
A true luxury is a reward for investing in and developing a real assetFor example, when my wife and I had extra money coming from our apartment houses, she went out and bought her MercedesIt did not take any extra work or risk on her part because the apartment house bought the car cheap louis vuitton She did, however, have to wait for it for four years while the real estate investment portfolio grew and finally began throwing off enough extra cash flow to pay for the car But the luxury, the Mercedes, was a true reward because she had proved she knew how to grow her asset columnThat car now means a lot more to her than simply another pretty car It means she used her financial intelligence to afford it
What most people do is they impulsively go out and buy a new car, or some other luxury, on creditThey may feel bored and just want a new toy Buying a luxury on credit often causes a person to sooner or later actually resent that luxury because the debt on the luxury becomes a financial burden
After you've taken the time and invested in and built your own business, you are now ready to add the magic touch-the biggest secret of the louis vuitton damier ric |
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