Sunday, December 13, 2015

Some Advice for Our Younger Readers: How to Get Rich

A repost from April 2013:

I lied in the headline. This paragraph won't tell you how to get rich but it will raise the odds of it happening and make the journey less stressful.

"New or rapidly expanding industries, whether glamorous or not, very often provide more opportunities to get rich than established sectors. The three reasons for this are availability of risk capital, ignorance and the power of a rising tide.
Investors are drawn to emerging industries in the hope of making a fast buck. To get rich you will need capital and to acquire capital you need to be where loose capital is searching for a home."
-Felix Dennis, How to Get Rich, pp47

If making money is your overriding ambition do not go into declining industries. Even a financial genius like Buffett could not save the American textile company Berkshire-Hathaway. Mr. Buffet has said that buying BRK cost him $200 billion.
On the other hand in 1999 any moron with three bullet points on a napkin could raise a $10 mil. first round for his dotcom.

Standing under the waterfall of money makes it more likely that some will stick to you.

As to Mr. Dennis, I think of him as a poor man's Richard Branson with a self-made net worth of around £500 Million. Younger readers may know him as the former owner of Maxim or MicroWarehouse.