There are poor investors. There are the very fruitful and wealthy investors. There are those who are in between, who want to go up top. There are behaviours associated with successful investing, which may not be apparent to those who don’t have their experience or insight.
Below, we note a few of the things that the wealthy do when they invest. These go beyond the usual advice of diversifying a portfolio and instead dwell things that are less obvious.
One thing they do is to avoid focusing on the US and EU.
The United States and Europe are seen as the most stable markets for development and investment. Most ultra-wealthy don’t. Instead, they look for growing economies and invest there. These are the people who saw China and India rising to economic prominence and are reaping the benefits.
Investors should do the research and see these emerging or growing markets. Places like Indonesia and Singapore are prime for investment, and China is still ripe for making people a lot of money. There might be more out there just waiting for a shot of cash to get the profit-ball rolling.
The ultra-wealthy feel no need to “keep up.”
Some people feel a need to follow the leader and keep up. They buy the same things wealthier peers do. They invest in the same things that their neighbours do. The herd instinct is strong, especially in those who aren’t used to managing their money well.
The ultra-wealthy focus on where they want to be in the future, not where their money makes the most of itself now. They don’t want to buy a Lexus because their peers do. Instead, they sit and wait until they have the level of cash they want before spending on a few long-term, high-value luxuries.
Finally, the ultra-wealthy do something most people wouldn’t believe: have a savings strategy.
More than anyone else, the wealthy like to save money. The key to making money is to not waste any, after all. These are people whose mindset sees that dollars saved today can become thousands or millions in the future. They apply solid strategies to both spending and saving.