By Angela Mutiso
Don’t Just Acquire Wealth, Retain It
“Eighty-five percent of the reason you get a job, keep the job, and move ahead in the job depends on your people skills-your ability to deal with others effectively.” – Zig Ziglar
Investing wisely in difficult times requires a complete understanding of market undercurrents and insights from successful investors and entrepreneurs. In order to gain a more holistic understanding of wealth acquisition and retention, we have examined some influential people in this field who have weathered various economic storms. This article looks at how renowned investors help others to develop a new way of thinking in relation to their finances in order to improve their lives and grow their money. The underlying message is, sustainability and long-term growth.
Managing tough times requires a combination of knowledge, strategic thinking, focus, and a long-term perspective. It is wise to seek guidance from successful investors and entrepreneurs, to know what needs to be done to stay afloat.
Let us look at Aliko Dangote, Africa’s richest man and founder of the Dangote Group. (Dangoteis a Nigerian businessman and industrialist. He is best known as the founder, chairman, and CEO of the Dangote Group, the largest industrial conglomerate in West Africa-Wikipedia). He says you should invest in sectors that have long-term growth potential, regardless of the prevailing economic conditions. Dangote was able to build his empire by concentrating on sectors with sustainable demand, such as flour, sugar, and cement. He is convinced that having a long-term perspective is essential because it enables one to weather short-term instability and gain from time’s transforming force.
Have you ever planted seeds during a dry season when everyone is waiting for the rains to plant and watched your money grow? One of the most successful investors of all time, Warren Buffett, says remaining composed and focused amid trying market circumstances is a must. He counsels financiers to have a long-term outlook rather than short term market trends. Buffett says, “Be fearful when others are greedy, and greedy when others are fearful.” In other words, investors should see market downturns as chances to securing high-quality assets at lower costs.
Buffett says you must conduct thorough research and understand the businesses you invest in. We have seen many people fail as a result of doing businesses they know nothing about. His approach includes identifying companies with strong competitive advantages and long-term growth potential. He knows that investing in businesses with a good track record and a strong economic base, which can withstand economic downturns and continue generating profits long afterwards, is the way to go.
Anthony Robbins, a prominent motivational speaker, writer, and life coach, looks at investing from a psychological angle. He encourages you to have a positive mindset, even when things are grim. He explains that fear and doubt can cloud judgment and lead to illogical investment decisions. Instead, he urges investors to focus on their long-term goals and the potential rewards that come with perseverance, patience and discipline.
This entrepreneur supports diversity as a risk management strategy. By spreading investments across many asset classes and sectors, investors can minimize their exposure to specific risks. He notes that conducting thorough research and seeking expert advice before making investment decisions is essential.
Meanwhile, Robert Kiyosaki, author of bestselling book “Rich Dad Poor Dad,” endorses financial education as a means to achieve and retain wealth. Kiyosaki says you should focus on acquiring income-generating assets like real estate, stocks, and businesses, instead of accruingliabilities such as unnecessary debt or depreciating assets.
Kiyosaki advises investors to be positive and to take advantage of market opportunities during difficult times. He states that economic slumps can create favorable conditions for acquiring undervalued assets and negotiating better deals. However, he cautions against reckless speculation and advises you to conduct thorough due diligence before making investment choices.
In addition to the insights from these popular moguls, we turn to other leaders who have shared valuable perspectives on wealth acquisition and retention during challenging times. Some keyprinciples that emerge include; value investing, this is a strategy preferred by many successful investors. It revolves around identifying assets that are undervalued in the market and making long-term investments in them. This approach places emphasis on the inherent value of investments rather than being influenced by short-term variations in the market. Additionally, effectively managing risks through diversification, asset allocation, and hedging strategies can be gratifying.
By diversifying investments across different asset classes, sectors, and geographic regions, investors can lessen the impact of market instability on their general portfolio. Successful entrepreneurs and investors stress the need for continuous education, staying informed about market trends, economic indicators, and developing prospects. By growing their knowledge, individuals can make more informed investment choices. Flexibility and adaptability are other important considerations because of changing market conditions. You may have to direct your focus to industries that can survive difficult times.
Zig Ziglar, a distinguished motivational speaker and author, emphasizes the significance of discipline and goal-setting in wealth acquisition. Ziglar encourages individuals to set clear financial goals and establish a roadmap to achieve them. He calls for consistency and perseverance, even during difficult times. Ziglar’s thinking revolves around maintaining a positive attitude, aligning actions with goals, and leveraging adversity as a promoter for growth and success.
Bill Gates, co-founder of Microsoft and one of the world’s wealthiest people, has dedicated a big portion of his wealth to philanthropy through the Bill and Melinda Gates Foundation. Gates is of the view that directing resources towards resolving global challenges can bring about enduring positive outcomes, while also boosting financial gains. He supports impact investing, an approach that seeks to generate financial returns alongside social or environmental benefits. Gates believes in aligning investments with personal values and aggressively contributing to effecting meaningful change in the world.
Suze Orman, a celebrated personal finance expert and bestselling author, encourages financial literacy and judicious decision-making. Orman states that people should prioritize understanding their own financial situation, managing debt well, and saving for emergencies and retirement. She calls for variations and urges you to maintain a balanced portfolio that aligns with individual risk tolerance and financial goals. She says you should be mindful of your spending habits and make informed choices to build wealth over time.
Meanwhile, Angela Duckworth, a psychologist and author of “Grit: The Power of Passion and Perseverance,” says resilience and perseverance play a major role in enabling long-term success. Duckworth’s research points out that individuals who possess grit, a combination of passion and perseverance, are likelier to overcome difficulties and succeed. She says one should stay committed to long-term plans, learn from failures, and develop an approach to changing market conditions.
Meanwhile, in his book – The Psychology of Money, Charles Richards discusses among other things, the positive side of wealth and the negative side of wealth. In the negative side, he saysthat this side of wealth is driven by fear and insecurity. It is also accompanied by stress and anxiety, and often by lashing out and blaming others. These stresses can lead to cardiovascular disease and other heart disorders. He says he has coached talented executives and entrepreneurs who are good people, but who each time they take on a new project, fear that they will be discovered to be frauds.
These people always fear that their shortcomings will be exposed, regardless of their education and experience. Even though they have the necessary ingredients for wealth and prosperity, they lack self-confidence. As a result, they live with an ongoing internal sense of insufficiency and nervousness. They are wealthy but they perpetually think that resources are scarce, leading them to aggressively guard and protect their assets out of fear and greed. Their negative perspective stems from the feeling that since resources are limited, their thinking becomes “I must acquire and safeguard what is rightfully mine before others do.”
The positive side of wealth says Richards, encompasses generosity, proficiency, creativity and discernment. He says through this individual, it serves a higher cause or principle beyond the mere accumulation of assets. This principle may be spiritual, philanthropic, healing, patriotic, or otherwise positive and generous. Richards explains that wealth therefore becomes a vehicle to realize a more expansive goal of service in the world. It recognizes that the world offers a nearly infinite abundance of resources, with more than enough to enrich those who have the desire and will to pursue their dreams. He says such people are not only their own potential, but that of others. They are positive and optimistic for themselves and encouraging of the people around them.
Successful wealth acquisition and retention during difficult times entail a multifaceted approach. Perceptions from prominent figures provide valuable direction. These leaders have shown us that long-term thinking, discipline, continuous learning, adapting to change, and making informed decisions associated with personal values and goals, will make you financially stable.
By following their advice, investors can develop a well-rounded approach to steer challenging economic environments and grow sustainable wealth. In the long run, the secret lies in upholding a proactive mindset, focusing on the right trajectory, and seizing opportunities amidst harsh conditions.
The writer is the Editorial Consultant of the Accountant Journal.