I saw this question on Quora and gave an answer that you can see it here. Today I will elaborate my own answer. Don’t expect a magic formula. This is more like a reflection or meditation.
Also, I’m not a billionaire, nor even rich. Therefore my authority is low to zero in these matters.
Where It Begins
Those of us, that aren’t billionaires, can only observe how other wealthy people get there, and then try to organize and simplify the different paths in one common plan.
As a result, and broadly speaking I would say that whether in a job or building a business the basic strategy is:
1- Find a problem that people need to be solved*;
2- Make sure that problem (and the solution) is common to a broad audience;
3- Once you find the solution, take it as fast as you can to everyone.
(* Sometimes it’s not a completely new, but an improvement of the current solution.)
The Three Categories
In my humble opinion, there are 3 categories, where one can achieve great wealth. Keep in mind that this is oversimplified.
They invented something from scratch that was useful to a lot of people. Think Bill Gates with Microsoft and products like Office. This made our life better.
I still remember using PC-DOS on my old IBM PS/1. It was great for me, I used essentially to play games. I already had the Microsoft Windows installed (I believe the 3.1), but I rarely used.
Then came the Windows 95. Meh. It was good, but I still used the DOS for running my games. And Windows to write and print some documents.
And finally, revolution arrived in the form of Windows 98. From that moment on, my life changed. The way we interact with computers changed completely.
Until this day I believe that Microsoft had 3 great operating systems: Windows 98, XP and 7. (Windows 10 for me is an upgrade of 7 with excellent quality and the one that I presently use)
I think it’s fair to say that personal computers have become the most empowering tool we’ve ever created. They’re tools of communication, they’re tools of creativity, and they can be shaped by their user.
― Bill Gates
Basically finding a new and creative way to improve a solution for a problem. Think Mario Moretti that created Geox. There were a lot of companies that already sold shoes. Even so, he went and build an improved and successful product – the “breathable shoe” – from scratch. At that time Nike turned down the idea. As a result, Geox was born. The rest is history.
If you want something new, you have to stop doing something old.
― Peter F. Drucker
The best people in allocating capital will end up with a lot of money: first because they will have good returns on investment. Also, they will attract money from others to invest. Think Warren Buffett. Probably the best investor that ever existed.
It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.
― Warren Buffett
In conclusion, this is the common plan, and categories that I believe will lead to great wealth. Easier said than done, right?
And you reader? What do you think?
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