Warren Buffett is renowned for withholding the details of his exact trading methods, yet his knowledge is so highly sought-after that at least a dozen authors have written about what they believe he does. According to Buffett, Professor Lawrence Cunningham’s book The Essays of Warren Buffett is his best biography. The book includes several pieces outlining Mr. Buffet’s investment philosophy and risk and opportunity management techniques.
People are interested in what works. We prefer to be involved in the activity typically centered on money. This gives you the general framework for obtaining and utilizing true wealth.
Several extremely affluent people freely express their thoughts on investing. “Why We Want You to Be Rich” by Donald Trump and Robert Kiyosaki discusses the value of investing as a wealthy person; they may not have the most elegant title, but their straightforward style is refreshing, and their guidance is quite helpful.
The adage “the rich get richer” downplays the chances and kinds of effort that lead to financial success. Trump and Kiyosaki have transformed into educators. Their first task is to encourage an alternative way of thinking about money. They mainly advise doing that. It is challenging to ignore Donald Trump’s contribution to education. After all, Trump’s television show “The Apprentice” taught viewers how to make business decisions at the MBA level.
Felix Dennis’ “How to Get Rich” is another book on how to get wealthy. Dennis is the publisher of various publications, including Maxim and The Week. He is a gifted poet as well. Dennis’s anecdotes are sharp and humorous, and they share many similarities with those of Kiyosaki and Trump. He has undoubtedly made a lot of money, for starters. The ability to truly “make it” requires humility, which is more significant.
Make quick money? Yes, you can if you’re extremely, extremely lucky. You can also lose it quite quickly, something I dread knowing firsthand. Let’s examine how to obtain and maintain what you desire.
LESSONS LEARNED AND WHERE TO FIND THEM
The truly wealthy can teach us a lot about sales, perseverance, teamwork, collaboration, networking, financing, and using our brains. Anyone who has succeeded should not be surprised by their meticulously crafted, not manufactured, high standards.
They are conceptually well-planned and executed. In one of his stories, Trump describes finding a damp men’s room floor. He asked a worker to make the necessary corrections. The bed in the men’s room was still wet when he returned. The employee was let go by him. Was it a matter of duty, promptness, or loyalty? No. The primary concern was ensuring there was no lawsuit risk if someone fell on the damp floor.
Trump’s primary value was thoroughness, even before he became a hotelier and entertainment executive. Trump mentions a dispute with his father regarding the price of the marble walls at Trump Tower in “The Art of the Deal.” Fred, his father, claimed that the cost was high. Donald was successful, and the reputation for elegance and excellent service is still in place today. Even if their opinions were different, they continued to respect one another.
THE MISSING HABIT IS HERE
It is a science to know who and how to collaborate with; the art is in seeing the opportunity. And chances come through the connections you make; this is a habit that many individuals never form.
Contrary to some financial advertising claims, creating an economic life plan takes time and effort. Additionally, the planning itself has changed. Making decisions during the planning phase is now a continuous activity. That appropriately suggests a balance in which team members and clients share responsibility for all outcomes.
Simply said, a thorough and attentive study of the rules governing this subject and the complexities of money management is necessary. When professionals in each fieldwork as a team, we may best receive appropriate professional advice on our money, property, education, health, and other investments.
Professionals and clients interact most effectively when the client can direct the professional. The most excellent way to run professionals is to require and expect adherence to three tasks rather than to become an expert in the field. The following are the three steps for the comprehensive and well-rounded company, personal, and family economic planning:
Service, Fiduciary Responsibility, and Scenario Planning
The four strategies for sustaining growth offer a philosophical direction with aspects easily integrated and controlled throughout a lifetime, so these activities are easily applied to them. These consist of the following:
Business, succession, estate, and wealth plans are all included.
Although these tools are excellent for achieving financial goals, are more money and incredible wealth the only goals? No, never.
Many of us desire to pursue activities that will allow us to improve the lives of less fortunate people. The late John Templeton, Bono, and Richard Branson all pursued interests outside their primary businesses. The late John Templeton, who led an investing empire, financed discoveries and new ideas in religion and science. Currently running an airline, Branson is dedicated to space exploration and developing renewable jet fuel. Bono, the lead singer of U2, also works to promote world peace.
Many people now think that the riches plan, as I refer to it, is the most exciting of the four goals because of the new mental freedom it brings. This strategy has the potential to increase our sense of purpose in life.
But meaning also comes from our daily tasks and labor. We’ve all had jobs and encountered absurd circumstances.
I provide marketing and financial advice for real estate. But I worked as a certified insurance agent for the Combined Insurance Company in my first position following graduation. For me, selling was an eye-opening experience; I lived in Virginia, just outside of Washington, DC. I met many people who were great at selling what we called “sickness” plans, which our company’s owner, Mr. Stone, nicknamed “the little giant” since it gave a lot of people good value at a low price. Stone created a system that drew in motivated people and then trained them in line with his positive thinking ideals. This includes a ten-minute sales presentation that was prepared.
We not only pay you if you are sick, Mrs. Jones but also if you are sick and exhausted – how is that? No, we can’t do that, but… was one noteworthy attention-getting line from the presentation. The actual sales pitch should have continued to the signature. Sleek and rational.
These inexpensive “Little Giant” policies were positively received by customers and offered value. There were rumors that Clement Stone was valued at around $500 million in 1979. For my part, I questioned whether I was giving these customers the most excellent possible service. Maybe I was too sensitive about this kind of selling. I believed I could succeed since it gave me a great understanding of people, and the pay seemed fair. However, I found it uncomfortable to be so impersonal about what I thought to be a very personal choice. So, we said goodbye.
I have talked with business advisers interested in real estate during the past few years. Together, the possible profit margin, the income, and the tax advantages appeal to them all. I cannot provide legal counsel regarding real estate contracts in New York, where I continue to hold my real estate broker license. And that law is wise. I believe the real estate laws in New York State are generally well-written and well-intentioned. They are calibrated to benefit investors, buyers, agents, and brokers. You’ll see why they could serve as an excellent example of client advisory.
Real estate has allowed me to take advantage of income opportunities that arise more quickly than most professionals can ever imagine.
In the example of the Long Island mansion from the book, I saw a bad scenario that may have cost the family several million dollars in estate taxes. Instead, we restructured the estate and made investment modifications that led to a 150% increase in cash value invested over three years with the help of a trusted advisory team, developing the right team and staying on track with the client’s objectives. Even the bull market from 2002 to 2005 couldn’t compare to this.
The Little Black Book on Wealth Generation: The Rest of the Narrative
Imagine a sizable summer “cottage” on the estate neighborhood of a former summer resort on Long Island. Except for some of the evident damage on the carpeting, floors, and doors, the house is deteriorating, though most people wouldn’t realize it.
The decision to refurbish, however, was not spurred by a desire for aesthetic alterations; instead, it was prompted by a structural hazard. The property manager had extended a 30-foot horizontal chase from the oil-burning furnace to the chimney utilizing a cunning but possibly risky shortcut. Over 20 years, gases started to enter the house from this abnormally extended chase.
What transpired afterward is obvious. As further issues emerged, the furnace replacement estimate became a rolling estimate. Not just the furnace, but the entire house, had been jerry-rigged! Our new team member pointed out that three concrete blocks were supporting the whole back section of a three-story house that the same caretaker had placed as structural support on a sheet of plywood.
The succession of abrupt shifts I previously detailed followed. Except for the old entitled family attorney, all the advisors were fired. A team of a builder, subcontractors, an engineer, and other skilled tradespeople needed to reconstruct the house ultimately came together to form a strong relationship and collaborate on the project. The house was also situated in a historic area. Suppose you have ever worked on a landmark property. You know the level of engineering and architectural abilities needed. It couldn’t be destroyed and rebuilt; the house had to be “replaced in kind.” These abilities exist, but a team is required to make them effective.
One must see to believe.
This is an excerpt from “The Billionaires Little Black Book” by Robert Bailey. You can learn about our trends and how you can follow them too.