The wealthy know how to pass their wealth from generation to generation. Each generation is taught very valuable wealth-growing and wealth-protecting lessons. Here are SEVEN of those WELATH-BUILDING lessons used by the old-rich–those WEALTHY people who inherit and pass their family wealth down through generations.

  1. –They DIVERSIFY in the traditional sense, seldom in the conventional sense. We have recently come to define diversification as spreading common stocks across multiple sectors. This technique applies only in a small part to the wealthy.  Instead, they ensure their wealth is in different vehicles, different institutions, different “formfactors”–some physical precious metals, debt-free property in various localities, loans on which they collect interest, and so on.  The length to which they practice true diversification is as lengthy and as innovative as their history of wealth.
  2. –They are ACUTELY TUNED TO GEO-POLITICS beyond that reported in our  mass media. Often they use family, friends and others in their network, their “connections”,  to learn of news and to help them to clarify and interpret the “real” information out there.
  3. –They are DEBT FREE, or, where they do have debt, it is used merely for leveraged investments that can be quickly liquidated in an emergency.
  4. –They UNDERSTAND INVESTMENT CONCEPTS. When investing, they read the fine print and work at understanding all the nuances involved in that investment.
  5. –They understand the “PERSONALITY” and “TEMPERMENT” of the investment vehicle. They understand what influences, affects, and shapes it. They know the external influencers and the internal dynamics and factors affecting it.
  6. –They act in ways to reduce and MANAGE THE RISKS associated to, or influencing, the investment.
  7. –They only deal with people they can TRUST. Whether it is to engage someone who can meet all the above criteria on their behalf or when becoming directly involved with a business transaction between themselves and others…they seek a trusting business relationship. With the government constantly lying to the people, constantly fudging numbers, constantly manipulating markets, and with news reporters who are largely bought and either forget or choose not to practice investigative journalism, finding trusted business sources or people to trust in business becomes a real challenge!