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Insist on Quality
To build wealth, make sure you invest in excellence – excellent businesses with excellent long-term prospects. Don’t allow mediocre investments to diminish the compounding power of those excellent businesses. Don’t allow hot
tips or investment fads to distract your attention from those excellent
businesses. Certainly, diversify to protect your wealth – but don’t
diversify aimlessly. Rather, diversify by investing in other excellent
businesses.
Value Your Time
Be willing to invest in technologies, services, systems and expert advisers that save you time, because time saved is money added to your net worth. Time saved allows you to focus more on what has made you money – your work, or allows you to more fully pursue your passions, maintain your health and spend time with your family.
Be on the Lookout for Opportunity
Watch for turmoil in the market. Fear breeds opportunity. Market and economic downturns are where assets transfer from the weak to the strong. Some call this contrarian or value investing. Be prepared to seize the opportunity that resides in every crisis.
Wealth and Life Goals
Understand that money is not an end unto itself, but rather a means for accomplishing life goals. Take an interest in your children and grandchildren, be a proud resident of your community and give generously of your time and money to causes you care about. Give your wealth a purpose, and be willing to spend money in pursuit of these goals, even if your only goal is simply to have a happy and financially secure family. |
