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Understanding the concept of investing



My journey in life as often made me to ask life most important questions. One of these questions came when I asked myself why some people rich and others are poor? A lot of people have come up with different answers to this question but I was never satisfied so I searched even deeper. Soon I began to understand  the core concepts of wealth growing. I began to realize that wealth is not about heritage, nor intelligence there were some underlying concepts that help some people to make the leap and leave others behind.
There are Concepts of growing wealth such as the concept of sowing and reaping which is more than agriculture, or science. It is an eternal concept that is tied into growth. There is also another concept of Multiplication.  These two concepts and more come together to define what is known as wealth.
At this juncture I will like to differentiate between wealth and riches.

I define wealth simply
“As a steady growth of productivity in all ramifications.” While riches as A state of having excessive resources than exceeds ones needs.

These may not be dictionary definitions, but they contain absolute objective truths that will be unveiled as you follow my blog. Simplified the definitions, one can say being WEALTHY involves growth;
A steady rise in income, productivity, revenue or whatever criterion you may want to base productivity on,
Whereas
Being RICH on the other hand, is just a state. Thus, going by this definition one may be rich both not be wealthy while another may be poor but wealthy?
This argument is valid in the sense that I could have a net-worth of 10 billion dollars but be on a steady state of decline towards bankruptcy but people will still think I am wealthy whereas, an individual may have just a 100,thousand dollars and be on a steady rapid rise to prosperity.

Real life examples
In 2004 thereabouts MarkZuckerberg was just another student at Harvard University with only a couple of thousand bucks in his account. He was not from a wealthy family yet today at the time of writing he is the world’s fifth richest man as stated by Forbes.

In the same period Quin a billionaire from UK fell from the state of being rich to bankruptcy. By 2006 one may have seen these two category sit close together and say Mark is not wealthy (because he did not have the kind of asset and luxury rich people flaunt at that time) and point to the other individual and say they are wealthy because of their luxurious lifestyle but you did be wrong. Because with time the inherent quality wealth of an entity is made manifest (This is the underlying principle behind the buying and selling or stocks). The ability to find out which stock is tomorrow’s Mark Zuckerberg and which will need government Bailout funds.

Without derailing the thought line I will now cut to the chase.
Investing is that differentiating factor that separates the rich from the poor(using the terms now by their general meaning). It is the act of continuous compounding multiplication of one’s resources at a rate that exceeds one’s needs so that as time unfolds one will sit in a state people know as being rich.

As it stands According to a post by HuffingPost, 8 people of the world 7 billion population owns half the wealth of the entire world 
Hence comes the questions;
  • How can I make the leap?  
  • What are the sound investing principles I must follow to make the leap? 
  • How can I break the circle of poverty/debts?


This is what this blog is about learning the act of investing. Follow me for more tips and join me as we grow wealth together.  I will do my best to make a new post at least a week but my target is thrice a week. I promise you that after ten posts your thinking and perception will be greatly improved if you are a positively thinking individual.

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