The Holy Grail?
As we reach the pinnacle of the entrepreneur ladder, our focus shifts entirely towards making money with money, often utilizing the funds of others.
Look at Warren Buffet.
Warren Buffet assesses investments and deploys capital to generate more capital.
The key to maximizing our earning potential is allowing our money to work for us.
Just imagine that.
The skills required at this level are quite specific – the ability to evaluate and decide on available investment opportunities.
Will you invest through angel funds? Will you establish your own small investment fund and invite others to join? Will you explore the stock market or acquire more businesses? What about real estate?
By the way, let’s briefly discuss the three main classes of investment.
Real estate, businesses, and shares of businesses (stock market).
Real estate, if managed with risk in mind, can build fortunes over time. For instance, purchasing a house with a 20-year mortgage and renting it out at a rate that covers the mortgage payment each month is almost certain to generate capital over time. However, it’s essential to be able to hold onto the property for at least 10 years.
Once that milestone is reached, you can reinvest the capital growth and continue building wealth. With focused determination and prudent decision-making, you can create nearly impenetrable financial security.
And that’s just one avenue of investment among the three. Real estate is the least risky, as they aren’t making any more land.
Tomorrow, we’ll delve deeper into the investor rung.