Bill Gatesone of the most recognized businessmen of all time, amassed a great fortune that placed him among the richest men in the world for three decades.
Although in 2008 he stopped being in charge of Microsoft, a company he founded with Paul Allen. On June 16, 2006, the businessman announced his intention to leave his daily work at the head of the company to devote himself entirely to his foundation. The transition of responsibilities was progressive and on June 27, 2008 he definitively left his work at the head of the multinational.
Despite all these changes, Gates continues to add plata to your fortune. According to Forbes, Bill Gates has a fortune of $126.2 billion. How does he do it? Next, we are going to tell you what is the strategy that he uses to continue increasing his income and that, in addition, can be imitated by many.
What is the strategy of Bill Gates to be rich
The renowned American philanthropist, 66, pointed out that to be richer every day he does not need to work, because his money does it for him; since it just multiplies itself, he pointed out in an interview with Bloomberg.
What is the strategy that Bill Gates uses to continue increasing his income
Bill Gates pointed out that to grow his money he uses a simple strategy: invest a percentage of his fortune in company shares.. The amount? At least 60% of your assets; that is, the multimillionaire follows Jesús Gil’s maxim: leave almost nothing in the bank and invest everything you have.
“We are not in a defensive posture where we have most of it in cash, or anything like that. The strategy that has been used in investments is to exceed 60% in equities,” he said. He has invested in dozens of companies, including Canadian National Railway and AutoNation, and is one of the largest owners of farmland in the United States.
The investment of 60% of your fortune is a considerable amount than that of the average US citizen, who chooses to invest his money in the purchase of a house, a car, etc. “Specifically, in the United States, families invest 32% of their assets in stocks on average,” says GQ Magazine.
Bill Gates’ first investment
For Gates, there is no money better spent than on training and education, which says it should be anyone’s first investment.
Bill Gates advises saving like a pessimist and investing like an optimist
Gates dropped out of college, but in a Reddit thread he participated in in 2014, someone asked him, “What’s your best personal financial advice for people making less than $100,000 a year?” His response: “Invest in your education.”
As a general rule, people with a master’s or bachelor’s degree can aspire to better paying jobs, which is one of the reasons why education is so important, as well as offering you knowledge, tools and relationships that can help you in the future.
This is how Bill Gates also remembers it, for whom Harvard meant “being in the midst of a lot of energy and intelligence.”
“It could be exhilarating, intimidating, sometimes even daunting, but always challenging. It was an incredible privilege, and though I left early, I was transformed by my years at Harvard, the friendships I made, and the ideas I worked on.“, he explained in a commencement speech in 2007.
Bill Gates: an optimistic pessimist
When thinking about personal finance advice, what Gates understands is that “you can only be optimistic in the long term if you are pessimistic enough to survive in the short term.” The best way to apply this for most people is save like a pessimist and invest like an optimistaccording to Bill Gates.
Saving like a pessimist means recognizing that sudden changes can come at any time,such as a pandemic, which he himself predicted would arrive (although now he predicts a even bigger threat than COVID-19). Hence Gates’s idea of always having a good cheap mattress at hand.
But Gates also recommends “investing optimistically” once the background and purposes of any company or business have been taken into account, something that in a Linkedin post he said he had learned from his friend Warren Buffet.