billionaires http://www.wisebread.com/taxonomy/term/18181/all en-US How to Think Like a Billionaire When You’re Broke http://www.wisebread.com/how-to-think-like-a-billionaire-when-you-re-broke <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-think-like-a-billionaire-when-you-re-broke" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/poor_woman_with_empty_wallet.jpg" alt="Poor woman with empty wallet" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>It&rsquo;s not easy being broke. As of 2014, there were almost 47 million Americans living below the poverty line. That&rsquo;s roughly 15 percent of the population.</p> <p>To simply tell these people to &quot;start thinking like a billionaire&quot; may seem tone deaf, or even cruel. But it actually is great advice. Millionaires and billionaires, especially those who are self-made, tend to think in a completely different way. It all comes down to a different view of the world. And it&rsquo;s time to embrace that mindset.</p> <h2>Don't think about the money you don&rsquo;t have</h2> <p>To illustrate this point, consider the test Dr. Tina Seelig gave her Stanford University students. She challenged them to <a href="https://www.psychologytoday.com/blog/creativityrulz/200908/the-5-challenge" target="_blank">make as much money as possible</a> in two hours using only $5 of &quot;seed funding&quot; tucked in an envelope. Working in teams, they could spend as many hours as they wanted planning, but once they tore open the envelope, the clock started ticking. The most successful results came from the teams that realized a very important part of the test &mdash; namely, that the $5 was a red herring.</p> <p>Concentrating on the small sum of money put them in a box, so they ignored it, and instead looked at ways to make money from scratch. Some of the ideas were incredible. One team made $650 by selling their time; they sold their three-minute presentation slot to a firm looking to recruit students in the class. Brilliant. Now that&rsquo;s how a billionaire thinks &mdash; looking at the opportunity, not the handicap.</p> <p>The lesson here is that the money you do not have right now should not, in any way, hold you back. If you don&rsquo;t have funds, find a way to use what you do have to make money. What can you sell? Is it your time? Is it knowledge? Is it a service? The lack of money in your account should not place a limit on your ideas.</p> <h2>Never say &quot;I can&rsquo;t afford it.&quot; Instead ask &quot;How can I afford it?&quot;</h2> <p>You may have heard it often growing up. &quot;Dad, can I get a new bike?&quot; &quot;No, we can&rsquo;t afford it.&quot; That&rsquo;s how poor and middle class people often think. They look at their current financial situation, and make a quick calculation. But that&rsquo;s the wrong approach.</p> <p>If you need something, or your kid wants something that isn&rsquo;t just a frivolous whim, don&rsquo;t automatically say, &quot;No, we can&rsquo;t afford it.&quot; Instead, counter with a question. Namely, &quot;OK &hellip; <em>how</em> can we afford that?&quot;</p> <p>Maybe it&rsquo;s a new stove, or replacing the old, worn-out car. If you immediately shut down the possibility, you&rsquo;ll never get it. A billionaire doesn&rsquo;t place these limits on ideas or dreams. They look into funding sources, ways to create capital, and many other money-generating avenues. And we&rsquo;re not talking about pulling out your credit card for something you can&rsquo;t afford and don&rsquo;t need.</p> <p>For necessities &mdash; or important dreams &mdash; it doesn&rsquo;t matter if the object in question costs $100 or $100,000,000. The process is still the same. How can you afford that? What can you do to make it happen? Start thinking. (See also: <a href="http://www.wisebread.com/how-to-come-up-with-1000-in-the-next-30-days?ref=seealso" target="_blank">How to Come Up With $1,000 in the Next 30 Days</a>)</p> <h2>See change as opportunity</h2> <p>Most of us are afraid of a major life change, be it a job loss, financial obligation, or a move to another state. These are stressful and difficult situations. But a billionaire sees any kind of change, even those most of us would consider negative, as an opportunity.</p> <p>If it&rsquo;s a job loss, it has created a glut of free time to use for a new venture. What can you do with that time that could create money in new and exciting ways? Think back to those college students with the $5 challenge. Some of them decided to make money waiting in line for people. They were making $20 a shot. Considering the minimum wage is currently $7.25, that&rsquo;s almost three times the amount for literally doing nothing.</p> <p>Fear of change is natural. But fear is a negative response to any situation, and in the long run, it will cripple your thinking and your ability to bounce back. Whatever the situation, take control and think positively. How can you turn it to your advantage? What do you have now that you did not have before this major event happened? Then, run with it.</p> <h2>Every penny saved is a penny earned</h2> <p>Billionaires do not blow money. People have this idea, which comes from a select few who hog the limelight, that the superrich are super wasteful. But they did not become rich by throwing money away.</p> <p>There is a now infamous anecdote about a billionaire who went into a New York bank asking for a $5,000 loan, and put his Bentley up as collateral. It was approved, and the bank employee parked the car in their underground garage. Two weeks later, the man returned from vacation, and paid back the $5,000, plus the $15.41 it accrued in interest. When asked why he, a rich man, would require such a small loan, he replied &quot;Where else could I have parked my car in New York City for two weeks, for only $15?!&quot;</p> <p>The story isn't real, but the strategy definitely is. This is how a billionaire would actually think about such a situation. Sure, they can afford the finest parking in the city, but why pay through the nose for it when they can get it for almost nothing?</p> <p>You can think the same way. What are you paying for, right now, that could be reduced in cost? What ways are there to save money on everyday purchases? From extreme couponing, to haggling and bartering, you have many options available to you.</p> <h2>Time really is money</h2> <p>Donald Trump once stated that he never wastes time. Even when he&rsquo;s on the golf course, he&rsquo;s doing business. He sleeps as little as possible, because every moment he&rsquo;s awake is an opportunity to make money or create something.</p> <p>Look at the ways you spend your time, and see how it can be maximized to work for you. If you&rsquo;re on the bus going to work, are you staring out of the window, or reading a book that could teach you a new skill? Do you have hobbies that are productive?</p> <p>Even playing video games can make you a small fortune, if you record yourself playing and post the videos to YouTube and Twitch. Indeed, the average &quot;pro-streamer&quot; makes between $3,000&ndash;$5,000 per month from 40 hours per week of game time. Think about that. They are literally being paid a living wage to play video games. Something that many people believe to be a waste of time has been turned into an income stream.</p> <h2>Consider every detail</h2> <p>It&rsquo;s been said that billionaires look at the bigger picture. It's often called &quot;the 30,000 foot view,&quot; which basically means seeing the layout, but not the houses, driveways, and storefronts. This is, in fact, the complete opposite of how a successful business operator thinks. Yes, the big picture is important at the get-go. But the details are what drives the success or failure of a venture. Often, it&rsquo;s a small detail that was overlooked that causes something to fail.</p> <p>Look at your own budget, and lifestyle, with that same eye for details. Are you paying $1 too much for something, especially a monthly bill? Did you examine the contract for your lease? Is there something in it that gives you a chance to save money? Did you get every deal you were supposed to get at the grocery store? Check the receipt.</p> <p>Back in 2005, a software company <a href="http://techtalk.pcpitstop.com/2012/06/12/it-pays-to-read-license-agreements-7-years-later/" target="_blank">hid a $1,000 prize</a> in the terms and conditions of its user agreement. It took five months, and over 3,000 sales, before someone actually read the agreement and claimed the money. Details count. Pay attention to them, and you could see incremental changes that really start to add up.</p> <p>Remember, billionaires and millionaires may live extravagant lives, but don't let that stop you from thinking the same way they do. It will make you wealthier in the process.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/how-to-think-like-a-billionaire-when-you-re-broke">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-to-feel-better-about-your-financial-situation">6 Ways to Feel Better About Your Financial Situation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-money-lessons-we-could-all-learn-from-dwayne-the-rock-johnson">6 Money Lessons We Could All Learn From Dwayne &quot;The Rock&quot; Johnson</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-only-money-advice-youll-actually-listen-to">The Only Money Advice You&#039;ll Actually Listen To</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-pearls-of-financial-wisdom-from-dave-ramsey">3 Pearls of Financial Wisdom From Dave Ramsey</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-inspiring-quotes-about-money-from-successful-women">6 Inspiring Quotes About Money From Successful Women</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Lifestyle advice billionaires broke entrepreneurship ingenuity inspiration making money millionaires poverty saving money Wed, 24 May 2017 08:00:08 +0000 Paul Michael 1952957 at http://www.wisebread.com 10 Beloved Books of Successful Millionaires http://www.wisebread.com/10-beloved-books-of-successful-millionaires <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/10-beloved-books-of-successful-millionaires" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-629579800.jpg" alt="the favorite books of successful millionaires" title="" class="imagecache imagecache-250w" width="250" height="142" /></a> </div> </div> </div> <p>If you are what you read, then the books that the super-rich have on their bookshelves should be of interest to all of us. From entrepreneurs and media tycoons, to international superstars and the President himself, here are 10 books that should be required reading for anyone looking to improve their lives.</p> <h2>1. Mark Cuban &mdash; <em>The Fountainhead</em> by Ayn Rand</h2> <p>A billionaire entrepreneur and a star of the hit series <em>Shark Tank</em>, Mark Cuban loves this book so much, he named his yacht after it. The author, Ayn Rand, is a polarizing figure in politics, and her books and life views are often adopted by both right-wing and libertarian politicians. Her basic philosophy revolves around the power of the individual, with the pursuit of happiness being the moral purpose of life.</p> <p><a href="http://amzn.to/2opib5I" target="_blank">The Fountainhead</a>, first published in 1943, offered the world Rand's philosophy of Objectivism. The story, which centers on a young architect who battles against conventional standards, has become a classic of modern literature. Speaking of the book to C-Span, Cuban said, &quot;You know it's funny because I'll pick it up when I need motivation, but then if I read too far, I get too much motivation and I get too jittery so I have to put it down.&quot;</p> <p>If a book can continue to give a multibillionaire goose bumps, it has to be worth a read.</p> <h2>2. Jeff Bezos &mdash; <em>The Remains of the Day</em> by Kazuo Ishiguro</h2> <p>Amazon founder and CEO Jeff Bezos has a net worth of over $73 billion. So, it's perhaps a little surprising that his favorite book, Kazuo Ishiguro's <a href="http://amzn.to/2owrbGH" target="_blank">The Remains of the Day</a>, revolves around the life of a servant. In this case, that servant is an English butler called Stevens, who narrates the novel.</p> <p>Set in postwar England, the elderly butler must come to terms with some pivotal issues from his past, whilst maintaining his stoic and &quot;correct&quot; behavior. In 1993, the book was turned into a beautiful film featuring Sir Anthony Hopkins and Emma Thompson.</p> <p>Speaking about the book, Bezos said, &quot;You can't help but come away and think, I just spent 10 hours living an alternate life and I learned something about life and about regret.&quot; Awarded the Man Booker Prize for Fiction in 1989, <em>The Remains of the Day</em> was included in The Guardian's &quot;Books You Can't Live Without&quot; list.</p> <h2>3. Mark Zuckerberg &mdash; <em>The Aeneid</em> by Virgil</h2> <p>Written between 28 and 19 BC, <a href="http://amzn.to/2p2EJKL" target="_blank">The Aeneid</a> recounts the legendary story of Aeneas, a Trojan who traveled to Italy and became an ancestor of the Romans. From his journey from Troy, to the Trojan War, the funeral games, and a vision of the underworld, <em>The Aeneid</em> is widely regarded as a classic of Italian literature. What's more, the entire book is actually a poem, consisting of 9,896 lines in dactylic hexameter.</p> <p>So how did Mark Zuckerberg, a young tech-savvy entrepreneur who created the social media climate we now live in, come to read the book? He was introduced to it while studying Latin in high school, and says the book &quot;knows no boundaries in time and greatness.&quot; He is also known to quote lines from <em>The Aeneid</em> in Facebook meetings.</p> <h2>4. Oprah Winfrey &mdash; <em>To Kill a Mockingbird</em> by Harper Lee</h2> <p>If you ever needed an excuse to read this masterpiece of American literature, knowing it's Oprah Winfrey's favorite book is a doozy. Set in Alabama during the Depression, &quot;<a href="http://amzn.to/2opm2Q2" target="_blank">To Kill a Mockingbird</a>&quot; covers three years in the life of Scout Finch, an eight-year-old girl, her brother Jem, and their father Atticus, a defense lawyer. Atticus is called upon to defend Tom Robinson, a young black man accused of raping a white woman.</p> <p>Told through Scout's eyes, it's a compassionate and moving story of kindness, cruelty, and the roots of human behavior. &quot;I remember reading this book and then going to class and not being able to shut up about it,&quot; Oprah told The Baltimore Sun. &quot;I read it in eighth or ninth grade, and I was trying to push the book off on other kids. So it makes sense to me that now I have a book club, because I have been doing that since probably this book.&quot;</p> <h2>5. Elon Musk &mdash; <em>The Foundation Trilogy</em> by Isaac Asimov</h2> <p>The founder and CEO of Space Exploration Technologies Corp is bringing the ideas of the future into the present day, with award-winning electric cars and whole-home solar power. To discover that his favorite book series comes from noted science fiction author Isaac Asimov hardly raises an eyebrow.</p> <p>The <a href="http://amzn.to/2oVr2gR" target="_blank">The Foundation Trilogy</a> series revolves around mathematician Hari Seldon, who has spent his whole life developing a branch of mathematics known as psychohistory. Using the laws of mass action, the science is able to predict the future on a grand scale. Unfortunately, it predicts the fall of the Galactic Empire, and a dark age lasting 30,000 years before the second great empire arises.</p> <p>Musk says, &quot;The lessons of history would suggest that civilizations move in cycles &hellip; there could be some series of events that cause technology levels to decline.&quot; The book series has had a profound effect on the way Musk thinks about the world.</p> <h2>6. Bill Gates &mdash; <em>The Catcher in the Rye</em> by J.D. Salinger</h2> <p>Set in the 1950s, <a href="http://amzn.to/2nBPJPf" target="_blank">The Catcher in the Rye</a> is narrated by a 16-year-old boy named Holden Caulfield, who is undergoing treatment in a mental institution. He recounts the tale of two days in his life when all this &quot;madman stuff&quot; happened to him. But there is a deeper meaning here, as we see him battle with issues around growing up, and avoiding the pressures of adulthood.</p> <p>&quot;It's my favorite book,&quot; said Gates. &quot;It acknowledges that young people are a little confused, but can be smart, and see things that adults don't.&quot;</p> <h2>7. Michael Bloomberg &mdash; <em>The Honourable Schoolboy</em> by John Le Carré</h2> <p>John Le Carré is a highly-regarded author of espionage novels, and has written such classics as <em>The Spy Who Came in From the Cold</em>, <em>Tinker Tailor Soldier Spy</em>, and <em>The Constant Gardener</em>. However, it his one of his lesser known works that captured the imagination of Bloomberg.</p> <p><a href="http://amzn.to/2ownm4c" target="_blank">The Honourable Schoolboy</a> tells the story of George Smiley, who must reconstruct an intelligence service and run a successful offensive espionage operation. It is the second novel in an omnibus featuring Smiley, and in 1983 it was adapted for a BBC Radio production featuring Martin Jarvis.</p> <p>&quot;It's 600 pages, it's mostly description, there is almost nothing that happens. But it's fascinating,&quot; said Bloomberg. Reading 600 pages of fascinating nothingness? Sounds like fun.</p> <h2>8. Richard Branson &mdash; <em>Stalingrad: The Fateful Siege 1942&ndash;1943</em> by Antony Beevor<strong> </strong></h2> <p>Founder of the highly successful Virgin brand, Richard Branson includes <em>Peter Pan</em>, <em>Wild Swans</em>, and <em>Swallows and Amazons</em> in his list of favorite books. As such, a book about World War II's most harrowing battle seems a little out of place in that company.</p> <p>The year is August 1942, and Hitler's huge Sixth Army reached the city that bore Stalin's name. Over the five months that followed, the battle for the ruins of the city cost more than a million lives. More than just a pure account of the battle, <a href="http://amzn.to/2owN60f" target="_blank">Stalingrad: The Fateful Siege 1942&ndash;1943</a> recounts the personal experiences of soldiers on both sides, and includes tales of interrogation, desertion, and execution.</p> <h2>9. Beyoncé &mdash; <em>What Will It Take to Make a Woman President?</em> by Marianne Schnall</h2> <p>There aren't many people in America, or the world, who don't know of Beyoncé. The multi-Grammy winning singer and actress has amassed millions from her albums, concerts, perfume lines, clothing, and films.</p> <p>Schnall penned <a href="http://amzn.to/2on4DWG" target="_blank">What Will It Take to Make a Woman President?</a> after a question was brought up by her 8-year-old daughter: &quot;Why haven't we ever had a woman president?&quot; It was a question she did not know how to answer, and so she set about asking the likes of Sheryl Sandberg, Maya Angelou, Gloria Steinem, Nancy Pelosi, Nicholas Kristof, and Melissa Etheridge.</p> <p>&quot;It's a collection of interviews and essays by great women,&quot; says Beyoncé. &quot;They will inspire you to become a better leader.&quot;</p> <h2>10. President Trump &mdash; <em>The Power of Positive Thinking</em> by Norman Vincent Peale</h2> <p>Love him or hate him, he's the 45th President of the Unites States, and a very wealthy man. Some say that he's not much of a reader these days, but he has stated that this book had a profound effect on him and his business empire.</p> <p>The international best seller by Norman Vincent Peale speaks of faith, spirituality, and the power of the mind to drive you forward. Via simple, prayerful exercises that you do daily, you can eliminate all the negative thoughts that prevent you from achieving the happiness and success you deserve.</p> <p>President Trump read <a href="http://amzn.to/2oniNY2" target="_blank">The Power of Positive Thinking</a> when he was billions of dollars in debt, and it turned his life around. &quot;My father was friends with Dr. Norman Vincent Peale, and I had read his famous book, <em>The Power of Positive Thinking</em>,&quot; said Trump. &quot;I refused to be sucked into negative thinking on any level, even when the indications weren't great. That was a good lesson because I emerged on a very victorious level.&quot; Victorious indeed, considering he is now the most powerful man in the world.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/paul-michael">Paul Michael</a> of <a href="http://www.wisebread.com/10-beloved-books-of-successful-millionaires">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-money-lessons-we-could-all-learn-from-dwayne-the-rock-johnson">6 Money Lessons We Could All Learn From Dwayne &quot;The Rock&quot; Johnson</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-easiest-ways-to-score-free-ebooks">5 Easiest Ways to Score Free eBooks</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-inspiring-quotes-about-money-from-successful-women">6 Inspiring Quotes About Money From Successful Women</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-think-like-a-billionaire-when-you-re-broke">How to Think Like a Billionaire When You’re Broke</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-cities-the-most-billionaires-call-home">The 5 Cities the Most Billionaires Call Home</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Entertainment billionaires books celebrities inspiration millionaires reading wealthy Fri, 21 Apr 2017 09:00:11 +0000 Paul Michael 1930340 at http://www.wisebread.com What Are Hedge Funds, Anyway? http://www.wisebread.com/what-are-hedge-funds-anyway <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/what-are-hedge-funds-anyway" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/man_investing_79064077.jpg" alt="Man learning what hedge funds are" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Few of us have the savvy &mdash; or the scratch &mdash; to invest in hedge funds, but they are still key players in the world of investing. So, what are they, and why do they matter?</p> <p>Here's the long and short of it: A hedge fund is a limited partnership of investors that uses advanced (often risky) methods, such as investing with borrowed money, in an attempt to realize large gains. They matter because they are a <a href="https://www.preqin.com/docs/samples/2016-Preqin-Global-Hedge-Fund-Report-Sample-Pages.pdf?rnd=1">$3.2 trillion dollar industry</a>. Anything that huge has the potential to make big waves in the global economy &mdash; for better or for worse.</p> <h2>Less Gamble, More Skill</h2> <p>Most hedge funds are, by design, limited partnerships. The hedge fund management group functions as the general partner, while third party investors, such as uber-wealthy individuals and banks and institutional investors, serve as limited partners.</p> <p>It shakes out like this: The hedge fund management group invests the limited partner's pooled monies using a variety of clever tactics aimed at realizing big returns. Rather than solely relying on the movement of the stock market, however, profits are made due to the manager's skill.</p> <p>The hedge fund was born out of the desire of large investment companies to mitigate market risks through exposure to alternative assets. For example, if the market were to take a dramatic plunge, hedge funds could minimize their losses by investing in assets that perform well in such an economic rut.</p> <p>Hedge fund managers use a <a href="http://www.wisebread.com/how-to-build-an-investment-portfolio-for-under-5000" target="_blank">diverse set of investment vehicles</a>, including investments in debt, stocks, bonds, commodities, and complex derivatives. Some hedge funds buy up shares in businesses, invest in crude oil, spend on collectables such as valuable art, or flip real estate. Sometimes a manager bets on these things, while at other times he or she might bet against them. In all cases, these investments are bought and sold to maximize returns.</p> <p>Notably, most people don't qualify to invest in a hedge fund. Only those individuals who have an annual income above $200,000 or a net worth that tops $1 million, excluding a primary residence, can join as a limited partner. Many folks who meet these thresholds, however, might balk at the fees. Hedge funds typically charge limited partners about 20% of all gains and about 2% of assets.</p> <h2>Hedge Funds Are Big Business</h2> <p>Originally, hedge funds were almost exclusively the province of the uber-wealthy, but institutional investors have also been increasingly using hedge funds in the last 15 years. Many public pension funds, banks, endowments, and trusts now invest in hedge funds. The industry is ballooning, growing by more than $70 billion in 2015.</p> <p>A whopping 60% of all hedge fund managers are based in North America, where New York City and Connecticut lead the way. Europe has 19% of the world's hedge fund managers, with the majority located in the UK. Asia-Pacific hedge fund managers constitute 17% of all firms within the industry, with major hubs in Hong Kong, Singapore, and Australia.</p> <p>All this is to say that the hedge fund industry is big, it's global, and it has the potential to make investors huge gains in a short amount of time. Interestingly, the act of &quot;hedging,&quot; which lends the industry its name, refers the minimization of risk. However, the aim of just about any hedge fund is to maximize returns on investment. And that usually requires relatively risky investment strategies.</p> <h2>Hedge Funds Today</h2> <p>Last year turned out to be a tough year for hedge funds, despite the fact that the industry made gains during the first five months of 2015. That winning streak was sharply reversed by four months of losses from June to September, the longest losing streak for hedge funds since 2008. Some of the best-known names in the industry lost their investors <a href="http://www.nytimes.com/2015/12/29/business/dealbook/hedge-funds-struggle-with-steep-losses-and-high-expectations.html?version=meter+at+1&amp;module=meter-Links&amp;pgtype=article&amp;contentId=&amp;mediaId=&amp;referrer=https%3A%2F%2Fwww.google.com%2F&amp;priority=true&amp;action=click&amp;contentCollection=meter-links-click">billions of dollars</a>. Global events including declining oil prices, the collapse of commodity prices, and the Greek debt crisis are partially to blame.</p> <p>Despite the industry's lackluster performance of late, the top hedge fund managers continue to take home billions of dollars. The 25 top-paid hedge fund managers <a href="http://www.institutionalinvestorsalpha.com/HedgeFundRichList.html?version=meter+at+1&amp;module=meter-Links&amp;pgtype=article&amp;contentId=&amp;mediaId=&amp;referrer=https%3A%2F%2Fwww.google.com%2F&amp;priority=true&amp;action=click&amp;contentCollection=meter-links-click">earned a collective $13 billion</a> in income last year, according to an annual ranking. Some of these top earners actually lost money for investors, but still personally profited.</p> <p>Also notable is that David Tepper, the hedge fund billionaire behind Institutional Investor's Alpha, put the <a href="http://www.nytimes.com/2016/05/01/business/one-top-taxpayer-moved-and-new-jersey-shuddered.html">entire New Jersey state budget</a> in peril this year when he moved out of the state to Florida, taking his hedge fund headquarters with him. Tax experts say his relocation could cost New Jersey hundreds of millions of dollars in lost payments.</p> <p>It's just another example of how this powerful industry can affect all of us.</p> <p><em>Anything we've missed? What are hedge funds, anyway?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/brittany-lyte">Brittany Lyte</a> of <a href="http://www.wisebread.com/what-are-hedge-funds-anyway">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/this-one-mental-bias-is-harming-your-investments">This One Mental Bias Is Harming Your Investments</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/your-loss-aversion-is-costing-you-more-than-your-fomo">Your Loss Aversion Is Costing You More Than Your FOMO</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/is-it-finally-time-to-invest-in-marijuana-stocks">Is It Finally Time to Invest in Marijuana Stocks?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-best-ways-to-invest-50-500-or-5000">The Best Ways to Invest $50, $500, or $5000</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-warren-buffett-says-you-should-invest-in-index-funds">Why Warren Buffett Says You Should Invest in Index Funds</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment billionaires gains global economy hedge funds profits Mon, 13 Jun 2016 09:30:18 +0000 Brittany Lyte 1728608 at http://www.wisebread.com The 5 Cities the Most Billionaires Call Home http://www.wisebread.com/the-5-cities-the-most-billionaires-call-home <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/the-5-cities-the-most-billionaires-call-home" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/rich_couple_boat_000063821551.jpg" alt="Finding cities that the most billionaires call home" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Lured by favorable tax laws and fantastic views, the richest of the rich choose their backyards with precision. Read on for our roundup of some of the most popular locales for the luxe &mdash; and why so many of the globe's elite choose to call them home.&nbsp;(See also: <a href="http://www.wisebread.com/8-jaw-dropping-tax-havens-of-the-filthy-rich" target="_blank">8 Jaw-Dropping Tax Havens of the Filthy Rich</a>)</p> <h2>1. Moscow</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/moscow_000019576792.jpg" width="605" height="340" alt="" /></p> <p>More than 80% of Russia's 68 billionaires reside in the sprawling country's capital, making Moscow a mecca of wealth. The city center is dominated by gold-domed architecture, pricey eateries, and luxe hotels. Home of the Kremlin and some of the world's most exquisite ballet, Moscow offers impressive city parks, unique urban promenades, and a nightlife scene that rivals that of New York. Moscow is also full of culinary treats. Consider your visit incomplete until you've sampled the perogies and borscht.</p> <h2>2. Zurich</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/zurich_000028993338.jpg" width="605" height="340" alt="" /></p> <p>The average price of a pair of blue jeans in this Swiss banking hub is a staggering $156. Need we say more? Millionaires account for an astounding 27% of the population, pushing the price of everyday items like jeans nearly out of reach for everyone else. The city itself is concentrated on a fairly small footprint surrounded by mountains, rolling hills, and other feats of nature. It's entirely possible to spend the morning exploring city streets and art galleries, and then enjoy an afternoon hike alongside a serene lake or river.</p> <h2>3. Monaco</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/monaco_beach_000032484536.jpg" width="605" height="340" alt="" /></p> <p>This city-state on the sea is the most likely place you'll bump into a millionaire. And with its posh casinos, glamorous hotels, and yacht-lined harbors, it's really no surprise. Monaco is a major center of banking as well as tourism, but it is most widely associated with being the ultimate playground for the rich and famous. With nearly 38,000 residents stuffed into soaring high rises and regal estates along a small area of the French Riviera, it is the world's second smallest and most densely populated country &mdash; and one of its most legendary tax havens. Monaco does not charge its elite residents income taxes.</p> <h2>4. New York</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/new_york_city_000045975658.jpg" width="605" height="340" alt="" /></p> <p>One in every 22 New Yorkers is a millionaire. And with 78 billionaires, the Big Apple has more uber-rich residents than any other city in the world. Home of the Statue of Liberty, Wall Street, and the best pizza on the planet, New York is chock full of iconic people and places just waiting to be explored. New York is also the global center of industries ranging from fashion to finance. Luckily, there are lots of frugal ways to enjoy the City That Never Sleeps.</p> <h2>5. Stamford</h2> <p><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5171/stamford_connecticut_000060481318.jpg" width="605" height="340" alt="" /></p> <p>This waterfront enclave in yankee Connecticut is called &quot;the city that works.&quot; Clearly, you've got to work pretty hard to afford living here. Stamford has one of the highest concentrations of millionaire households in the nation, with housing costs at more than double the national average. But with its easy access to NYC, views of Long Island Sound, and a bustling downtown, Stamford is one of Connecticut's jewels. This city of 126,000 people boasts a lively bar scene, small theaters, and several live recording studios where episodes of legendary television shows are filmed. Brimming with hedge fund types, Stamford is also home of the largest trading floor in the world.</p> <p><em>Have you visited any of these hangouts of the mega-wealthy?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/brittany-lyte">Brittany Lyte</a> of <a href="http://www.wisebread.com/the-5-cities-the-most-billionaires-call-home">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-reasons-being-a-millionaire-is-overrated">5 Reasons Being a Millionaire Is Overrated</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-beloved-books-of-successful-millionaires">10 Beloved Books of Successful Millionaires</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/3-smart-ways-young-millionaires-manage-their-money">3 Smart Ways Young Millionaires Manage Their Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/13-things-i-learned-from-renting-out-my-home-on-airbnb">13 Things I Learned From Renting Out My Home on Airbnb</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-tourist-towns-that-are-actually-great-to-live-in">6 &quot;Tourist Towns&quot; That Are Actually Great to Live In</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Real Estate and Housing Travel billionaires millionaires rich tax laws wealthy world cities Thu, 24 Dec 2015 12:00:03 +0000 Brittany Lyte 1625936 at http://www.wisebread.com Donald Trump's 5 Biggest Business Failures http://www.wisebread.com/donald-trumps-5-biggest-business-failures <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/donald-trumps-5-biggest-business-failures" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/donald_trump_5440393641_2892f718d7_z.jpg" alt="Reliving Donald Trump&#039;s biggest business failures" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>While Donald Trump is currently enjoying success on the campaign trail for the Republican nomination for president in 2016, the ride hasn't always been smooth for the <a href="http://www.wisebread.com/this-is-how-donald-trump-builds-wealth-and-you-can-too">controversial billionaire</a>. Over the years, he's had many ventures simply fail to catch on for a variety of reasons. Here are five of his biggest business failures &mdash; some of which you've probably never heard of.</p> <h2>1. Trump: The Game</h2> <p>In 1989, Trump launched a board game from Milton Bradley similar to the iconic Monopoly. The game was initially met with excitement, but in the end, the market spoke and loudly said, &quot;No thanks.&quot; The game was simply titled &quot;<a href="http://www.amazon.com/gp/product/B0002CEXOU/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B0002CEXOU&amp;linkCode=as2&amp;tag=wisbre03-20&amp;linkId=YHP6CZU7DOOX6NFS">Trump: The Game</a>&quot; and while it tried to be a shorter version of Monopoly, critics found it to lack strategy and it shortly went away.</p> <p>Then in 2004, on the heels of <em>The Apprentice</em>, a different version of the game resurfaced with the catchphrase &quot;I'm Back and You're Fired!&quot; on the cover of the box. The game was based on the bidding and winning of properties but it also never gained traction (some considered it quite boring to play), and thus was discontinued, as well.</p> <h2>2. Trump Vodka</h2> <p>When Trump launched his own Vodka product in 2006, it was a bit of a head scratcher due to his adamancy that <a href="http://www.thefiscaltimes.com/2015/07/10/15-Facts-You-Didn-t-Know-About-Donald-Trump">he has never had a drink</a> (he actually had a brother who died from an addiction to alcohol). While Trump Vodka had the very appropriate slogan of &quot;Success Distilled,&quot; sales were very meager and he was unable to take significant market share away from Grey Goose and Absolut. Production of Trump Vodka was finally halted in 2011 due to a lack of sales.</p> <h2>3. Trump Airlines</h2> <p>From 1989 to 1992, Donald Trump was heavily involved in the airline industry with Trump Shuttle, Inc., better known as Trump Airlines. In 1989, Trump purchased the landing rights and many of the assets from the defunct Eastern Airlines and began hourly flights between New York City, Boston, and Washington D.C. The downfall of the business venture began when Trump began upgrading his fleet in an effort to become a &quot;luxury&quot; carrier. The interior of his Boeing 727s boasted gold-colored lavatory fixtures, chrome seat belts, and maple wood veneer throughout.</p> <p>Naturally, Trump's ticket prices began rising and so did his financial troubles. Unfortunately for Trump, most of his core travelers could care less about the fancy upgrades and wanted the convenience of a budget regional airline more than the luxury aspects Trump was trying to grow. In the end, Trump Shuttle was never able to make a profit and his high debt-load eventually led to defaulted loans. By April of 1992, Trump Shuttle failed to exist when his creditors sold all remaining assets to US Airways.</p> <h2>4. Trump Casinos</h2> <p>Trump Entertainment Resorts, the company behind three Atlantic City hotels and casinos, two of which no longer exist, has filed more than a couple of bankruptcies as of 2014. Trump appears to be losing interest in Atlantic City, as his only current tie to the city is the Trump Taj Majal casino resort, which bears his name and likeness in exchange for stock in the company.</p> <h2>5. Trump University</h2> <p>Back in 2005, Trump founded Trump University, a non-accredited school designed to teach his investing strategies and techniques along with his real estate prowess. Things went okay until 2010, when four students&nbsp;<a href="http://money.cnn.com/2015/07/24/news/donald-trump-university-lawsuit/">came forward with a lawsuit</a> claiming the school was nothing more than an extended infomercial with a constant upsell trying to get students to purchase additional seminars.</p> <p>Trump University was subsequently renamed the &quot;Trump Entrepreneur Initiative,&quot; and after that failed to gain traction, the university went away altogether in 2011. Trump is expected to be questioned in court this month stemming from the class action lawsuit brought on by the former students.</p> <p>To be fair to &quot;The Donald,&quot; he's had many incredibly successful business ventures including Trump Tower, <em>The Apprentice</em>, 40 Wall Street, and the Grand Hyatt Hotel in Manhattan. Whenever you take the number of business risks that Trump has taken over the years, there are inevitably going to be failures along the way. As with any successful investors, a few failures along the way simply demonstrate their tenacity.</p> <p><em>Should Donald Trump's business failures be used as a gauge for his possible effectiveness as President of the United States?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/kyle-james">Kyle James</a> of <a href="http://www.wisebread.com/donald-trumps-5-biggest-business-failures">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/could-trump-bring-higher-interest-rates-and-inflation-consider-these-money-moves">Could Trump Bring Higher Interest Rates and Inflation? Consider These Money Moves</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-5-most-successful-investors-youve-never-heard-of">The 5 Most Successful Investors You&#039;ve Never Heard Of</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-unique-ways-millennials-are-dealing-with-student-loan-debt">7 Unique Ways Millennials Are Dealing With Student Loan Debt</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-think-like-a-billionaire-when-you-re-broke">How to Think Like a Billionaire When You’re Broke</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/heres-how-the-election-could-impact-your-wallet">Here&#039;s How the Election Could Impact Your Wallet</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance billionaires business failures casinos donald trump investors The Apprentice Wed, 09 Sep 2015 13:00:19 +0000 Kyle James 1548185 at http://www.wisebread.com Self-Made Billionaires: Investment Lessons From Their Success http://www.wisebread.com/self-made-billionaires-investment-lessons-from-their-success <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/self-made-billionaires-investment-lessons-from-their-success" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/success-5313551-small.jpg" alt="man" title="man" class="imagecache imagecache-250w" width="250" height="167" /></a> </div> </div> </div> <p>According to <a href="http://www.forbes.com/billionaires/">Forbes, there are over 1,400 billionaires in the world</a>. Sure, some of these folks inherited business empires from their parents. Many grew in wealth as they guided the development of small concerns into large publicly held companies, such as Microsoft, Oracle, and Google. Several acquired enterprises previously controlled by foreign governments and reaped benefits during periods of privatization. (See also: <a href="http://www.wisebread.com/business-lessons-from-the-builder-of-a-mediaentertainment-empire">Business Lessons From the Builder of a Media-Entertainment Empire</a>)</p> <p>How-I-became-a-billionaire stories are intriguing. They typically involve recognition of market opportunities and willingness to take large risks along with disregard for popular opinion about their business practices and investing philosophies.</p> <h2>Common Behaviors of Self-Made Billionaires</h2> <p>What I find most compelling are the secrets of self-made billionaires who built wealth largely through personal investments. Looking at their stories, I identified attributes shared among these ultra-rich and conceivably replicable (in part) by a regular investor. (See also: <a href="http://www.wisebread.com/64-funny-inspiring-and-stupid-money-quotes-from-famous-people">64 Funny, Inspiring and Stupid Money Quotes From Famous People</a>)</p> <p><strong>Invest According to Value </strong></p> <p>I knew that<a href="http://www.businessinsider.com/warren-buffett-on-value-investing-2012-9"> Warren Buffett was a value investor</a>, but it never occurred to me that so many other billionaires share this philosophy. For example,<a href="http://en.wikipedia.org/wiki/Graeme_Hart"> Graeme Hart</a>,<a href="http://www.forbes.com/profile/suleiman-kerimov/"> Suleiman Kerimov</a>, and<a href="http://en.wikipedia.org/wiki/Seth_Klarman"> Seth Klarman</a> also invest in distressed and unpopular companies.</p> <p>They snag publicly-held shares when prices are low and acquire large stakes in privately-owned businesses that are troubled. Sometimes, they wait for market valuations to rise before cashing out. Generally, though, they increase value by revamping business operations, selling off underperforming assets, and restructuring finances to generate strong cash flow. (See also: <a href="http://www.wisebread.com/buy-and-hold-investing-four-ways-to-make-it-more-effective">Buy-and-Hold Investing: 4 Ways to Make It More Effective</a>)</p> <p><strong>Buy or Build Companies With Other People's Money</strong></p> <p>These investors aren't afraid of borrowing money or orchestrating business acquisitions through financial leverage.</p> <p>For example,<a href="http://www.forbes.com/profile/eli-broad/"> Eli Broad</a> co-founded homebuilder Kaufman &amp; Broad (now KB Home) with a $25,000 loan from his in-laws. Similarly, <a href="http://en.wikipedia.org/wiki/Harold_Simmons">Harold Simmons</a> bought his first drug store with $5,000 in cash and a $95,000 loan, and later employed leveraged buyouts (LBOs) to buy undervalued businesses. <a href="http://en.wikipedia.org/wiki/Ira_Rennert">Ira Rennert issued junk bonds</a> to acquire struggling companies.</p> <p><strong>Make Fortunes on a Limited Number of Investments</strong></p> <p>Many billionaires make their initial fortunes in one or two major investments. They typically spend their early careers focused on developing a single business or type of investment.</p> <p>For example, Simmons spent 13 years building his drugstore chain, which he sold to Eckerd Corporation for $50 million in 1973. <a href="http://en.wikipedia.org/wiki/Philip_Anschutz">Philip Anschutz</a> accumulated wealth from oil-producing land that he purchased near the Utah-Wyoming border. <a href="http://en.wikipedia.org/wiki/Albert_Fr%C3%A8re">Albert Frere</a> amassed substantial holdings in Belgium's steel industry before launching an investment company. <a href="http://en.wikipedia.org/wiki/Peter_Lim">Peter Lim</a>'s investment in Wilmar, a palm oil company, was the source of his initial fortune.</p> <p><strong>Develop a Background in Finance, Accounting, or Economics</strong></p> <p>Most self-made investment billionaires studied or worked in financial realms. College courses taught them business basics, and first jobs provided insights into real-life financial practices. These foundations of knowledge later informed their investment philosophies and strategies.</p> <p>Buffett learned value investing from Benjamin Graham, who is considered the author of this approach. Kerimov and Lim both studied accounting, and Hart began forming the concept of his business while completing his MBA. Both Lim and Buffett held jobs as stockbrokers, while Simmons worked as a bank examiner and banker.</p> <p><strong>Start Building Wealth at a Young Age</strong></p> <p>Many billionaires begin the process of building wealth in their 20s and 30s or earlier.</p> <p>For example, Buffet and Lim purchased their first shares before turning 20, and Broad bought his first piece of real estate at 20 years old. Klarman was in his mid-20s when he started the Baupost Group, and Frere began accumulating steel-related companies at age 30. (See also: <a href="http://www.wisebread.com/getting-kids-started-with-the-stock-market">Getting Kids Started With the Stock Market</a>)</p> <p><strong>Act Unfazed by Setbacks</strong></p> <p>Billionaires suffer occasional losses. But instead of withdrawing from the world's markets, they continue investing.</p> <p>An extreme example is Kerimov. He lost billions after selling his Russian assets to buy shares of Morgan Stanley, Goldman Sachs, Deutsche Bank, and Credit Suisse in 2008, the year of a global financial crisis. To rebuild his wealth, he borrowed to invest in mining, real estate, and telecommunications. As of March 2013, <a href="http://www.forbes.com/profile/suleiman-kerimov/">his net worth is $7.5 billion</a>.</p> <p><strong>Diversify Investments After Making a Fortune</strong></p> <p>Billionaires may get rich from one or two sources, but they diversify their assets after becoming wealthy. Many establish holding companies for a broad base of investment activities while others make acquisitions in more limited spheres.</p> <p>Just as Buffett established Berkshire Hathaway as a holding company for a diverse portfolio of investments, Rennert started <a href="http://www.rencogroup.net/">Renco Group</a>; Hart, <a href="http://www.rankgroup.co.nz/">Rank Group</a>; and Simmons,<a href="http://www.valhi.net/phoenix.zhtml?c=103380&amp;p=irol-irhome"> Valhi</a>. Some still focus on a few key areas but are more broadly diversified than before. For example, Anschutz owns <a href="http://www.xanterra.com/">Xanterra</a>, which provides hospitality services in national parks, and <a href="http://aegworldwide.com/">AEG</a>, a sports and entertainment group that manages concert venues, musical artists, and more.</p> <p>Learn more about specific investments for certain billionaires through <a href="http://www.ibillionaire.me/">iBillionaire</a> (an iPhone app) and <a href="http://www.forbes.com/real-time-billionaires/">Forbes' real-time tracking of publicly held investments</a>.</p> <h2>Lessons for the Regular Investor</h2> <p>What can a regular investor learn from these success stories?</p> <ul> <li>Start building wealth with your first paycheck, whether earned from a side business or first job.<br /> &nbsp;</li> <li>Don't be afraid to take risks, especially if you are young and have years to recover your wealth, but structure your finances so you'll always have cash flow to service debt.<br /> &nbsp;</li> <li>Pursue opportunities for high returns, noticing that these may come from business deals requiring hands-on involvement as well as strong financial and operations leadership, not just typical investments on the open market.<br /> &nbsp;</li> <li>Learn the basics of finance in order to evaluate opportunities and manage your portfolio. Note that you have a limited capacity for monitoring your investments so choose wisely (buying stock on low valuations).<br /> &nbsp;</li> <li>Don't fret over setbacks; apply lessons learned on the next investment. Diversify as you accumulate wealth to protect from severe and sudden losses.<br /> &nbsp;</li> <li>Finally, whether or not adopted by the masses or endorsed by the experts, if your investment approach delivers results over the long-term, stay the course.</li> </ul> <p><em>What billionaire investors have you drawn investment inspiration from?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/julie-rains">Julie Rains</a> of <a href="http://www.wisebread.com/self-made-billionaires-investment-lessons-from-their-success">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-basics-of-asset-allocation">The Basics of Asset Allocation</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/should-you-trust-your-money-with-these-4-popular-financial-robo-advisers">Should You Trust Your Money With These 4 Popular Financial Robo-Advisers?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/what-makes-a-company-an-attractive-investment">What Makes a Company an Attractive Investment?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-investors-with-better-returns-than-warren-buffett">5 Investors With Better Returns Than Warren Buffett</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/is-paying-off-your-mortgage-early-costing-you-money">Is Paying Off Your Mortgage Early Costing You Money?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Investment billionaires investing value investing Tue, 20 Aug 2013 09:48:32 +0000 Julie Rains 981374 at http://www.wisebread.com