Patience and Discipline
A lot of people want to strike it rich. However, there are some underlying principles that many ignore in the journey to wealth. If you want to join the select few who become rich, it is necessary to copy the principles that guide billionaires. Not all billionaires give up their secrets readily, but there are some who do.
According to Mike Barrett, your character influences how well your wealth grows. If you are prone to road rage and speeding on the interstate, those character qualities will negatively affect your business investment behavior. Buying on the thrill of the moment is not the right way to become wealthy. Barrett emphasizes how many buy popular stocks like Amazon, Google, and Facebook. Although this might seem an obvious way to make money, there is a fatal flaw underlying popular investing. Popular investing places money in companies that have already struck it rich. Buying into swollen investment pools is like blowing more air into a full balloon. The balloon eventually pops. The key is to identify a balloon that has no hole and is empty.
Buying low is the next strategy to apply. What is buying low? Buying low is simply paying a low amount of money for an undervalued stock. It is like buying dirty gold. Everyone ignores the gold because it has dirt on it. A wise investor sees the gold under the dirt, and buys it, later cleaning it off with water. Many investors like to follow popular trends, buying into established companies. This purchase of clean gold may look right, but it requires a lot of initial funding to get started. Profit is produced when you pay a small price for a quality product. Price and quality are not always related. Price is the market popularity of a product. Popularity is often defined by what emotional humans think of the product.
Many people are good at selling high. They work long hours, trying to get that next promotion. Selling high is making a given product or service appear as good as possible. If you are just starting out, this means selling your time to projects that are popular with a majority of the market. It is polishing your gold. Getting the gold to sell is hard, but once you have it, it is essential that you polish it well.