Who has never been interested in making money? Correction: a lot of money. These seven tips from a book by author Sam Wilkin will put you on the right track. Leonardo DiCaprio in ‘The Wolf of Wall Street’. Having a lot of money does not mean having a few patients in a residential area or a sports car. Here we talk about yachts, jets and private islands, chandeliers adorned with diamonds and skyscrapers that bear your name.
Sam Wilkin, author, an economist at Oxford University, traces seven major models that have appeared in history and led to excessive wealth. It is inspired by both the Roman era and the billionaires of the IT sector.
Secret 1: possession is a whole
Think about the Monopoly board game. People who inherit a lot of property no longer have to kill themselves to get a lot of money. Real estate creates rental income, mines are full of precious stones and olive groves produce olive oil. At one point, John Rockefeller owned 90% of the refining capacity of the United States. Needless to say, he was making a lot of money.
Contact networks also play a lot. This is an interesting and lucrative phenomenon used by more and more people. The fax and the mobile phone are the most classic examples. The network effect is important, especially in the telecommunications sector. That’s why Mexico’s Carlos Slim has become a wealthy business and AT & T has dominated the United States for more than 200 years. AT & T bought out its competitors by threatening to stop contacting customers with an AT & T number. Their monopoly was not interrupted until 1982 when the company split.
Secret 2: Do not be the best but the one and only
Monopolies are real gold mines. The family Von Thurn und Taxis was very rich because it came from the emperor who owned the only European postal service in working order. The Russian oligarch Vladimir Putin became a billionaire because he had shares in Svyazinvest, the company holding the monopoly of telecommunications in Russia.
Although government monopoly is hardly self-evident, temporary monopolies in the private sector are more prevalent. At the time, Microsoft and Bill Gates held 90% of the operating system market. Technology companies often make a lot of money because they have patents that are synonymous with mini-monopolies. If a man tries to imitate them, the authorities must intervene.
Secret 3: Size Matters
The bigger a business, the more wealthy its owners are. The most classic example is, of course, the Walmart American supermarket, a pioneer in terms of superstores. Four of the world’s 12 largest fortunes are owned by members of the Walton family, the owners of Walmart.
A competitor knows very well that he has to grow up, but sometimes it’s hard for him to get the capital he needs to do it. That’s why there are only two companies that build aircraft in the world: Airbus and Boeing.
Secret 4: let someone else pay the bill
Many riches secrets are hidden in boring and complicated regulations. In his book, Sam Wilkin refers to the legendary example of American sugar producers in the 1980s who received a government grant of $ 1.5 billion (or $ 200,000 per farmer). These subsidies were part of an impenetrable program governed by the government. That’s how laws can turn into gold.
A private institution guaranteed by the state is a secret of similar wealth. Many banks that are too big to go bankrupt and whose managers pay generous salaries are affected. If there is a problem, the government can intervene. Fannie Mae and Freddie Mac, two government-subsidized banks, took enormous risks. They lowered their operating reserves to 2.5% of assets while the most adventurous banks were satisfied with 8%. Investors continued to invest. The banks still had the support of the government. This is called ‘being generously rewarded for risks taken by someone else’ (ie government or taxpayers).
Secret 5: be good at handling numbers (and love money)
Be good at handling numbers or at least do not be reluctant to them. John Rockefeller’s first job was an accountant position. A love and a desire for money can also help. Bill Gates insisted on wanting to earn his first million dollars by the age of twenty.
Secret 6: the worst place is actually the best
It is on the edge of the chasm that we find the greenest grass. In the 90s, post-communist Russia, despite the economic catastrophe, was the favorite place of a series of businessmen. The latter were pitiless, pragmatic and had a particular aversion to rules and authority.
In 2004, the city of Moscow had more billionaires than New York. Through their connections, some tricks held control of a series of state-owned enterprises. A shocking example is that of privatized oil company Loukos which forced its subsidiaries to sell its barrels of oil at $ 1.7 while it could sell them at $ 15 on the market. This has raised $ 800 million in 36 weeks. Other emerging but sometimes dubious economies have emerged in Mexico, India, China, Egypt, and the Philippines, where many billionaires have emerged.
Secret 7: be pitiless
This is the least attractive secret of wealth. Many wealthy people have become so because their former business partners have opened doors for them. John Rockefeller was secretly persuading his partners to opt for manual labor when he had personally saved enough money to buy the business by himself.
In conclusion, a person who wants to get rich must (unfortunately) be ruthless. The greatest examples come from antiquity. Indeed, Marcus Crassus had Rome’s wealthiest people executed to build his own fortune.