My profession gives me an opportunity to meet wealthy people and get a ring side view of their journey. Reading about the life stories of these people also gives good insights. Its fascinating to see that each individual’s relationship with their wealth is unique and they use it in the way they best see fit. Understanding how wealth gets created is equally interesting. Some of the many ways are -
Building and scaling the business
Investing – value, growth, seed and venture
ESOP – stock options of management teams which
reward them for the growth of the business
Real Estate
Commodities
Managing other people’s money
Marrying into money
Inheritance
Sale of business
Being at the pinnacle of your profession or
unbeatable in your craft
Speculation and Leverage
While building and scaling business is the
most common theme, speculation and leverage is extremely rare. Businesses are
as varied as they come, some supply to the government and some stay away from
them, some are necessities and some luxuries, some are basic and some
complicated, some are mature and some evolving, some professionally run and
some by families and extended families, most domestic some multinational. Some
cyclical and some secular. Some capital intensive and some capital light. Some
sell to businesses and some to consumers. Some can’t run without machines and
some without people.
Wealth can also be spiritual, once you have it ,material wealth does not matter so much. There are many ways to material wealth and
some rules to stay wealthy – following asset allocation as per your profile,
respecting risk and staying within your means. Similarly, there are many ways
to heaven but only one way of staying there. Doing good and being good which also happens
to be the basic tenet of humanity.
Stay blessed and since the festive season is
here, do spread the cheer around :-)
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