Dear Brother, 9 Thoughts on Wealth Creation
Growing up, my family didn’t have much money. So I’m learning about wealth creation as I go.
What do I get wrong?
Background
Over text, my brothers and I discuss sports and investing. One of my brothers asked how to create wealth. I answered with the following thread:
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people who are scared of money — like how we grew up — cannot create wealth. To create wealth, we have to utilize money to create more of it.
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there is incredible power in the idea of “ownership” — stocks, buildings, companies, etc. we cannot create wealth when our money is linked to hours worked.
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if we deeply study and understand and apply the basics — like WB’s annual letters — we will be ahead of 95% of the market.
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wealth creation is a full time, full contact sport. It takes incredible focus. This type of focus is only possible if we eliminate all people/ things/activities that drain our focus.
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remember that life is short and long. It’s short so don’t put off things that can be done today until tomorrow. It’s long, so ride the wave of compounding interest.
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the most successful people in the world are great at only one thing. If we do the one thing that we are great at, we become very valuable. Assets follow value.
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we should avoid big mistakes, but we should not spend too much time avoiding small mistakes. We learn from them.
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conventional thinking about the world is for suckers — it is a scheme built by the wolves who make money by eating the sheep.
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accumulating wealth is not hard. But it does require perseverance and incredible focus. Most people confuse difficult with focus.
