Personal Finance & Investing : How to Become Wealthy

Personal Finance & Investing : How to Become Wealthy


Hello, my name is Mark Griffith, and this
is going to be a short explanation of how to become wealthy. As you can imagine, there
are several problems with this. First, you have to decide what you mean by wealthy. And
this may sound like I’m playing word games, but this can mean different things for different
people. For example, would you like to live comfortably and do no work, or would you like
to work very hard–as a lot of rich people do–and have enormous amounts of money. For
each of your plans, there has to be a strategy, and you have to accept that the more money
you’re likely to make, the bigger the risk’s going to be. What you’d like me to say now,
of course, is in order to become wealthy, you need to do A, and then B, and then C.
But, of course, you already know enough about life, to know that it’s not like that. And
why isn’t it like that? The reason it’s not like that is that, first of all, it’s a dynamic
situation. Lots of people are doing thing. So if I say something like this week you should
buy silver on Tuesday, and you should sell silver on Friday, lots of other people–thousands
of other people–will react to what I just said, and immediately make it untrue. Lots
of people will buy silver on Monday, for example, and they might sell it again on the Wednesday,
long before the Friday. So, what everybody believes, and what everybody does affects
everybody else. And, therefore, if there was a single plan for getting rich–or for become
wealthy, it immediately wouldn’t work–not just because other people would do it, but
because some other people would do the opposite, some people would do the same thing, some
people would do it earlier, some people would do it later, and the game changes as it goes
along. Each of the players changes the rules. So, unfortunately, you have to do the hard
thing. You have to work out what you want–whether you want lots of pleasure, lots of money,
lots of both. You have to work out how much risk you’re willing to assume. And then you
have to do something usually a little bit original, and that can be writing a pop song
that nobody’s written before. It can be coming up with an invention nobody’s come up with
before, or it can mean just doing something in finance no one has come up with before.
Michael Milken, for example, before he ran into trouble in the 1980s and got put in prison,
became wealthy, originally, with a clever and honest idea, in the 70s, when he studied
what are now called junk bonds. He studied bonds, traded by small companies which had
very, very low credit ratings. So that meant that the bonds were very, very cheap, because
nobody wanted to hold them, and Milken thought perhaps there’s a clever way I can put hundreds
of bonds together so that the risk from this one cancels out the risk from that one. The
risk one from this one cancels out the risk from that one. And so, he did something fairly
original, he did lots of hard work, did lots of research, and ended up being able to make
a lot of money by buying something that everybody else thought should be cheap. And Milken showed
how it could be expensive. And it sounds childishly simple, but what you have to do is buy cheap,
and sell expensive. And there are a hundred different ways to do that, although it sounds
very, very obvious. Or, in trading terminology, if you’re buying and selling everyday, you
have to run your profits and cut your losses. And these things sound like the easiest things
in the world, but they involve a certain amount of discipline, and they also involve you understanding
things a little bit more deeply, or a little bit more cleverly than anyone’s done before.
And that’s the hard part.

7 Comments

  1. Jax Teller says:

    young mula baby!!!!!!!

  2. Jason M says:

    @WTSMiniEvenniaLOL who has the money to invest in that many houses?

  3. choughlak nta says:

    makes a lot of sens

  4. louea380 says:

    This is probably not wealthy. Why should i listen to him?

  5. 801CARDLINE says:

    Yet..the people telling us on "how to" become wealthy are not wealthy at all.

  6. nur Jamalpur says:

    Pretty nice video man! Me and my parter has been earning just under $5,000 a week using Fast Finance Hub (google it). It is the most awesome way of making cash online! So take a look. Search Google for the words Fast Finance Hub.

  7. jangyman says:

    I would like to accumulate wealth, but struggle with the ethics of greed.

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