“Failure defeats losers, failure inspires winners.” Robert Kiyosaki
3 Key Principles to Getting Rich
Over the course of our own lives and information we have gathered from interviews posted at FutureMoneyTrends.com, we have developed a discipline over time that we want to share with our members today; these 3 key common denominators we have found in the very wealthy, as well as some of the key things that our more successful investments have had.
1. Patience
Having the patience to see things play out is critical to becoming a successful investor or business builder. We have all been conditioned to expect an immediate payoff, but the fact is the world’s most successful business people and investors spent years waiting for big decisions to pay off. People who are building a business, need to think about where their business will be in 5 to 10 years, not next month. Short term thinking assumes failure down the road, long term thinking assumes success and longevity. Most of these small micro-caps we buy have a short term trading potential, but to be part of the deal, you need to buy it at the right price and plan on holding it for years.
Patience, according to Rick Rule of Sprott Asset Management, is the advantage he has over other investors. He is willing to wait, most are not, so while others are jumping ship during a crunch, he is positioning himself for an even larger profit down the road.
Thinking in decades as an investor and thinking in years as an entrepreneur is one of the key things we have noticed in our own success and the success of others. If you really believe in the success of your investment or business, then there is no reason why you shouldn’t feel confident enough to see your decision play out.
2. Unconventional Education
The sooner you apply this to your life, the higher quality of life you will live. Ignoring conventional wisdom and the comfort of joining the masses is a must to becoming a successful individual. If maxing out a 401k during the height of the crisis in 2008 and buying Apple at $700 gave you confidence because everyone else was doing it, you need to change your thinking. Start by listening to the right people, surround yourself with people who buy and sell, not just the 99% of financial planners who advocate you buy buy buy.
Good education from people who are wealthy is probably the easiest place to start, wealthy individuals have knowledge and an understanding that is worth your time. Most people unfortunately take financial advice from their parents, teachers, and financial planners. These are all good people, but unless your parents are financially free, are they really the best people to tell you how to become successful financially? Most parents just go into the default mode of go to school, get a good job, and save for retirement in 40 years. Teachers, we all love those dedicated to helping children learn the basics of life, but they are in no position to offer financial advice. Lastly, financial planners (this one is obvious), they not only have a financial interest in you buying investments through them, but sadly it takes longer to become a massage therapist or cut hair than it does to become a qualified financial planner.
We are only aware of a handful of financial planners who short the markets, focus on the economy, and prepare their clients for a currency risk. According to our good friend Bradford Hansen who is a financial planner we trust, most financial planners take sales training classes and know little to nothing about the actual investments they are putting you in.
Warren Buffet is famous for sticking with what he knows and we would all be better investors if we just did that one thing. Become an expert in real estate or a specific sector in paper assets, and then profit from that knowledge.
3. Overcoming Human Emotion
This is a big one, you literally have to force your brain to overcome your natural human emotions. This effects us all, acknowledge it, and then consciously override that emotion that makes you want to sell when everyone else is selling or buy when everyone else is buying.
Try and focus your mind to buying undervalued assets, even if that just means buying on days an asset you want is down. Our chief strategist tells a funny story to investors about the 2011 silver rally. When it hit $25 he said he would wait for the pull back, then it went to $30, $35, $40, and then finally at $45 he just couldn’t take it anymore, he abandoned the discipline of waiting and bought at $45 only to see silver come crashing down a week later. The point is, even successful investors who have a focused trading strategy can get overtaken with emotion, so you have to make this discipline part of your life, part of your thinking.
It’s scary to think about, but a lot of times our own thoughts are a contrarian indicator.
We hope everyone has a successful 2013 and be on the lookout for our top pick of 2013 to be announced in the next 2 weeks. We believe this company is not only undervalued, we believe the entire commodity is the most undervalued in the entire market.
