I’ve repeated this until I’m blue in the face, but blue is my favourite colour, so I’ll remind you again “buy quality assets for the long-term!”
As an investor or wealth-builder there are some rules that really should become rules of thumb if you want to get richer.
So, what are the key rules for investing to build wealth?
- Buy quality assets — shares/companies and real estate that lots of people will like into the future.
- Buy for the long-term because short-term values can be screwy.
- Buy when the majority want to sell.
- Buy a number of companies/assets so you are diversified. Try to have the best companies in different sectors which have potential. And make sure you get exposure to different asset types such as property, shares, businesses you might own and even collectables that have a great history of gaining value.
- Invest in the right structure making sure you understand the best way to reduce your taxes legally.
- Make your interest in wealth-building a daily commitment because you don’t get richer in a day but daily.
- Read as much as you can so you can become as smart as you can. Go to conferences, tap into videos from money educators and be committed to becoming better at investing. Hang out with the right people, either in person or through books or videos.
“Warren Buffett spends five to six hours per day reading five newspapers and 500 pages of corporate reports. Bill Gates reads 50 books per year. Mark Zuckerberg reads at least one book every two weeks. Elon Musk grew up reading two books a day, according to his brother,” reports Michael Simmons from medium.com, which is a powerful lesson in its own right!
The price of ignoring these seven rules is there is a good chance you won’t get richer over time, but you could easily end up being poorer.