‘How the Rich gets Richer

12 10 2011

“The way it works is this: the rich sell for $8, which means the poor buys for $8. Then when the stock price decreases to $6, the amateur sells it back to the rich, who of course now pays $6 for it back. Then when the stock price goes back to $8, the rich sell it to the poor again, which means the poor pays $8 again. Then when the price decreases back to $6, the amateur gets nervous again and sells it back to rich for $6.

Believe it or not, this happens all the time and is one of the many reasons why the rich get richer and the poor get poorer. This is one of the main reasons for the need for education in the fields of business and investing. In Proverbs 4:7, the Word of God states “ Wisdom is the principle thing; Therefore get wisdom. And in all your getting, get understanding”. The sad part is that amateur investors often have neither and think that God is speaking for his own health; But He’s not. He’s speaking for ours…”

http://www.gurufocus.com/news/4199/investment-warfare-be-fearful-when-others-are-greedy-and-greedy-when-others-are-fearful–warren-buffett

*******

Personal Note: 

The Rich have plenty of money to invest, and more.

When they have passive income much more than they need to spend, they start to have surplus of invest-able funds or Capital.

Having enough CAPITAL at bay, they can afford to wait for the right timing to buy cheaper. And they can afford another wait until the price reach higher than their buy costs. When the right time comes, they sell and take the profits.

On that process, they were able to increase their Capital and so they get richer. They then wait again for the next cycle to come to them.  That’s Cool!

Very simple isn’t it? Indeed…. But!

It is the stage of having “Passive Income > Expenses” that is the most difficult part to achieve. A person wanting to be rich must first strive to get at that level and when he does, everything else will follow. Yes, easier said than done.

TIME, another important aspect. Experience and learning  does not come overnight, it takes times to be learned and manifest as a character within.

“Some of the best lessons we ever learn are learned from past mistakes. The error of the past is the wisdom and success of the future.” Dale Turner

“Practical wisdom is only to be learned in the school of experience. Precepts and instruction are useful so far as they go, but, without the discipline of real life, they remain of the nature of theory only.” Samuel Smiles

“Wisdom and understanding can only become the possession of individual men by travelling the old road of observation, attention, perseverance, and industry.” S.S.

Being patient and persevering will work in favor of a person wanting to reach greater highs. Because as time passes by, plenty of learning experiences will be brought upon them. No one wanting to rise higher will be spared from trials and challenges, from temporary defeat and sufferings. Only those who persevere and kept on trying shall achieve WISDOM, to realize anything that they desired.

“Capital+Time+Wisdom”

That is the formula to get RICH, the TRUE RICHES that will be retained for long term and not the RICHES that easily comes and easily goes.

Now, Do you still want to get RICH?


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3 responses

8 11 2011
doon po sa amin

hello, haribon…🙂

ba’t di ka na masipag mag-post lately? busy busihan?🙂

dumaan lang ako to say na WP deactivated my site. ang sabi sa tag sa itaas ng site ay advertising raw baga ako o part ng isang search engine optimization (seo) campaign. iyon ang sabi sa banner sa itaas ng site. wala naman silang ipinadalang personal notice o ano, thru email ko. basta, isinara na lang nila. free-hosting daw kasi ang site tapos daw ay may promotion allegedly.

now, i am aware na free hosting iyon at in fact, inilagay ko pa sa aking site policy (Hello World article) na bawal sa DPSA ang ads or promo of any product or service. and i have complied with that for as long as i can remember. wala akong plan or intention to engage in any ads or promo for as long as hindi dot com or paid site ang webpage ko. and i have not entered into any agreement with any company or individual to advertise or promote for them. in short, i deny the charge. ayon…

since isinara nga nila agad ang site, hindi ko ma-review kung alin or saan ang ina-allege nilang may ads, promo or SEO campaign, kung sakali… now, am thinking, it’s very possible na roon sa last post ko. kasi, naglagay ako roon ng references or citations sa dulo – apat (4). btw, the last post is about Stitches and Burns (in the figurative sense). ang isang source is a wiki entry about burns, in tagalog, so that’s out of consideration. the other one is a procedure yata for suturing wounds. another is an image/illustration of the skin and its layers. the last is a site discussing the romantic tradition in literature. ayon.

after the fact (na naisara na ng wordpress ang site ko), naalaala kong may pop-up images na lumabas sa at least dalawa sa mga iyon. hindi ko binasa, isinara ko lang ang box/es and i read on sa content ng page to see if possible na maging reference. ayon… possibly, iyong may mga pop-up messages na iyon ang likely na part ng SEO efforts/campaign. ‘yong sites na mga iyon ang may efforts, hindi ako… the fact that i used them as reference/s (rather carelessly, now that i think back on it) does not mean that i support their site/s, their SEO efforts or that i am part of their profit venture. not at all. wala akong connection sa kanila either by way of advocacy or profit. nada.

sumulat na ako sa technical group ng WordPress noong friday pa, wala akong natatanggap maski recognition man lang na nakarating ang letter ko sa office nila. well, ang mahirap sa ganitong sitwasyon, since system checking ang ganyan, walang personal-personal, sa pagkaalam ko. basta na-detect ng system na may aberya, it automatically closes the site, puts up the template/banner in the closed site saying that the owner is guilty unless proven otherwise, at huwag pamarisan. ayon.

may carelessness on my part sa nangyari and i admit to that. nagmamadali ako noon na mai-publish ang article so i spent less than an hour to check the references or citations. ordinarily, i spend several hours or even days just checking out the citations and pictures am going to attach within the article/post. that did not happen in the most recent post and the toll seems high.

i made an error, yes. but i am not guilty as far as the company’s charges are concerned. i am hoping that the technical people at WP would at least send me a note saying that they would look into the matter. hopefully, soon. soonest.

sayang din, kung sakali… i spent so much man-hours in blogging already. may trade-offs din iyon sa activities ko. besides, hindi na lang isang dosena ang followers ko, e. sayang if things would just end up this way. ayon…

ayan, ang haba na ng situationer ko sa ‘yo, ha? regards!

8 11 2011
Haring Ibon

OH MAY GULAY!!!
nag tsek ako sa site mo at sarado na nga! susmiyo nakanangteteng badtrip yun!!
sobrang effort at panahon mo mawawala ng ganun ganun lang? watdapak!!!
pambihirang kainaman talaga yan sana maayos pa :(:(:(:(
sana talaga! sana talaga! sana talaga!
abang abang lang ako ng resulta ha…
hay ang buhay nga naman😦

teka baka naman napapansin na nila medyo takaw bandwidth blog mo at ang traffic sa site mo eh tumataas na kaya
baka gusto ka na nila mag upgrade sa subscribed account? pero dapat mag advice din sila dba?

ako rin pansin ko madalas na sila mag pahaging ng “update to pro”…. tsk tsk tsk baka bisness is bisness na? patapos na ang free lunch (free hosted blog)???

11 11 2011
doon po sa amin

ahaha… di naman ‘yon mawawala, andoon pa rin. but they’re after making me transfer agad sa paid site sa wp or sa ibang hosting sites. ah, di ko muna gagawin ‘yon. o, baka di ko gagawin ‘yon, at all. aantayin ko muna ang sagot nila sa letters ko.

pag inilipat ko agad ang site, ibig sabihin, tinatanggap ko ang charge nilang nagpa-profit ako or i meant to profit sa cited URLs na ‘yon. ah, hindi naman…

kung talagang walang mangyari sa appeal ko, aabangan ko na lang sa ukay-ukay ng dormant sites ang dpsa, hehe…🙂

btw, hindi naman kamahalan ang dotcom. kaya mas pinili ko ang free hosting, mas marami itong naaabot na audience. mas marami ang makakabasa sa mga sinulat kong posts na karamiha’y informative in nature. yown…🙂

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