What Some of the World’s Richest People Can Tell Us About Investing

Advertisement

richest people - What Some of the World’s Richest People Can Tell Us About Investing

Source: Shutterstock

I’m perhaps one of the few investors that doesn’t hang on every word Warren Buffett says. Although he’s one of the world’s richest people with a net worth of $84 billion, his buy-and-hold strategy is unoriginal. Don’t get me wrong,  it’s an excellent strategy for longer-term growth. But for becoming affluent, buy-and-hold doesn’t cut it.

How can I be so sure? Because if buy-and-hold was so effective, anyone with a 401K plan would have a reasonable chance of joining the world’s richest. The harsh reality is that they don’t. Living within your means and saving for the future are great personality traits. They may also produce a comfortable retirement.

However, our society has changed dramatically, and therefore, so will our investing advice. Consider that Buffett is 87 years old. This means that throughout much of his investing career, gold bullion backed the currency. Also, with the rise of bitcoin and cryptocurrencies, we’re rapidly transitioning towards a new era in financial markets.

In my opinion, agility and the willingness to shake things up are key traits among the world’s riches. Here are prime examples from the ultra-wealthy.

Investing Advice from the World’s Richest People: Jeff Bezos

Currently sitting atop Forbes’ top 20 billionaires list , Jeff Bezos’ net worth is a staggering $112 billion. He could quite literally buy a small country with his vast fortunes. What makes Bezos remarkable is not just that he’s the alpha dog among the richest people in the world; rather, he still has the hunger as if he’s not.

It’d be easy for him to just bask in Amazon.com, Inc.’s (NASDAQ:AMZN) success. When most people talk about ecommerce, they mean Amazon.

Sure, major retailers like Walmart Inc (NYSE:WMT) and Target Corporation (NYSE:TGT) have their ship-from-store initiatives. But nothing captures the engagement and cultural integration quite like Amazon.

From offering a different way to sell books, to completely upending the retail landscape, Jeff Bezos is the ultimate disruptor. But for him, bringing brick-and-mortar retailers to their knees isn’t enough. Last year, Amazon sent shockwaves throughout the business community when it bought-out Whole Foods Market, Inc.

Not content with killing department stores, Bezos wanted a piece of the grocery pie, too.

Some critics might call that behavior mercenary, and perhaps some truth to that sentiment exists. Nevertheless, if you want to become one of the richest people in the world, or at least die trying, you have to be a little ruthless.

At the very least, you should embrace the idea of rocking the boat a little.

Investing Advice from the World’s Richest People: Ma Huateng

Strong Quarter Affirms the Bull Thesis for Tencent Holdings (TCEHY) Stock
Source: Shutterstock

One of the best pieces of investing advice you can ever receive is to think big and long-term. Investing is similar to religion in that it requires faith. Once something actually materializes, it’s no longer religion, but science. And you rarely make money on facts.

Tencent Holdings Ltd. (OTCMKTS:TCEHY) chairman and CEO Ma Huateng is huge believer in China and the emerging markets. Not only that, Huateng is becoming more politically active, pushing top Chinese legislators to fully digitalize the number-two global economy.

In other countries, the move towards digitalization is considered organic and completely logical. However, in a tradition-rich nation like China where harmony is considered nearly sacrosanct, offering a different approach is risky.

Yet Huateng never became one of the world’s richest people by playing it safe. Furthermore, irrespective of my feelings towards Tencent stock, I admire Huateng’s confidence and faith in his countrymen. Furthermore, the head executive isn’t just proposing change for its own sake.

In his speech to China’s legislative body, Huateng emphasized that technology is a benefit, not an impediment. He said, “Daily lives will become more efficient if the likes of big data, cloud computing and artificial intelligence are better incorporated into industrial, medical, financial, cultural and educational endeavors.”

Again, it’s a tough sell to marry tradition with technology, especially across China’s diverse populace. However, it’s these big ideas, and the confidence to put your money where your mouth is, that separates the richest people in the world from everybody else.

Investing Advice from the World’s Richest People: Donald Trump

Source: Shutterstock

Speaking of big, there’s no one bigger than the “bigliest” of them all: Donald J. Trump.

According to Trump, Trump is one of the world’s richest people and everybody knows it. Anybody that suggests otherwise is simply fake news.

On top of that, he’s one of the best people in the world. For instance, he once told a reporter that he was “the least racist person you’ve ever interviewed.”

In other words, President Trump is never middle of the road. He is either the best, the most, or the least, depending on the context.

What does this have to do with investing advice, you ask? Simply, when it’s go-time, it’s go-time. You can research the stink out of your favorite company. But when all that analysis is done, you have a decision to make.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

The richest people in the world make their choice, and accept the consequences. Going off on Twitter Inc (NYSE:TWTR) is optional.

Love him, hate him, or just wish he would go away, we can all agree on this: Trump is relentless. While that can be an annoying personality trait, for investing, it’s quite valuable.

Ply your trade in the markets long enough, and you’ll get burned. It is simply inevitable. But the best investors aren’t necessarily the smartest ones; they’re the ones who stay in the game. You can’t learn from your mistakes unless you’re willing to risk committing more.

As of this writing, Josh Enomoto is long gold and bitcoin.


Article printed from InvestorPlace Media, https://investorplace.com/2018/05/investing-advice-richest-people/.

©2024 InvestorPlace Media, LLC