Understanding the behavior of the Rich by Nelson Lee Flores at Bull Market, Bull Shit (Sheet) at Philstar

It is about getting better...

Bull market, bull sheet by Nelso Lee Flores at Business Life Section of PHILSTAR  | October 28, 2013

Here Nelson who claims he is related to some of the people mentioned here, attempts to do a dissectomy of the brains and behavior of the rich.  Well he give us an anecdotal and quotes of the rich and famous.

He classifies the rich into several categories (what for?  If you have more money than you can spend then you are rich)

Some advice and quotes:

1.  Focus on cash flow rather than assets by Dy Han Kia and John Gokongwei.   Thus when you sell the business the focus is on cash flow generation capability;  not asset size. You cant do much with large asset that cost you RET and huge maintenance costs/expenses

2.  Small fortunes comes from frugality and hard work;   large fortunes comes from heaven.  Thus most of the fortunes comes from saving;  spend less than you earn so that you savings.  Pay yourself first;

3.  On Loans:

     1.  Other peoples money  -  learn how to grow your business on credit;

     2.  Always protect/safeguard your credit standing, pay your debts, and on time;  stay in touch with your creditors.

     3.  Debt is an obligation, not a gift;

4.   On risks - do not gamble except on calculated risk

5.  Collect what you have loaned out

6.  Invest in people's growth,

7.  Cash flow velocity,  high volume, low margin,  (compensate with large margin low value;  the right mix between low margin and high margin;  high velocity, low velocity)

8.  On personal mastery:

     1. Think differently from the rest;  avoid being a me too;

     2.  Exercise discipline (delayed gratification)

     3. Non stop education is the source of wealth

     4.  The goal is being better (excellence) not being richer

     5.  To succeed is our birthright (Desiderata - you have the right to be here)

9.  Giving is the real wealth;  (from Jose Mujica - those who need more are poor)

10 Start small (I know of someone who will start big.  Lance Gokongwei told that to earn millions you have to invest billions.  Do baby incremental steps.  Earn, save, earn, invest more and grow your business as you grow trees.  If you burn hot or start big like a mushroom, you end up with the same fate as meteor, or mushroom