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Friday, January 29, 2010

Wealthiest Families are intelligent investors

I had a wrong concept until recently that the wealthy people do only enjoy lavishly and are careless enough. They are not serious to their business or investments either. Well they are not. This may be the cases with new people who recently has made a lot of money and are rich. But my point of discussion is regarding those people who have been very rich and wealthy for the past long time back. They are rich by heredity and have a noble blood of wealthy.

However recently i got an opportunity to work with one of the firm owned by a wealthy family, where i made all mine thoughts and confusions clear regarding this people. Anyway talking about the investments made by these wealthy families is a sure source of learning to everybody. These kind of families inherit over $100 million. The sources of their revenue is consist of various sectors like rail roads, agriculture, plantation etc.

I am here to share how these wealthy families carry out their investments proceedings. The points may be the following:

1.) Remaining Liquid: One of the intelligent and important tricks of these wealthy families is that they tend to keep 20-30% of the total in liquid. Or they invest for a very short term investment schemes. This they do because they know that life has unexpected emergencies which can be very unpredictable. Businesses can be notorious for having times when cash flow dries up and create chaos all around the globe. Thus it is a very good idea to create a habit of remaining liquid.

2.) A role of cheapness: Most of the wealthy people i have come across has the same motto. They always do practice cheapness. Its a motto to them. He or she will negotiate until the very last in order to decrease the amount of fees need to be paid.

3.) Loose investments are dropped: Again one of the important factors regarding this wealthy families is that they do not stand by the loosing investments. They are very serious and watch their investment sectors very carefully. If they find out that a particular investment is loosing they don't carried upon but dropped down by and rather concentrate on the new and healthy investment.

4.) Taxes: Lastly this wealthy investors are very serious towards tax. They give extra importance to the process of taxation. They calculate the amount after the tax return on the investment. They give the best possible effort to deduct as much from the tax.

Thus this are the small factors but rather affective guidelines which these wealthy families follow for their successful and healthy investment plans. They are not the investors of today, they are into the business for the past very long time.

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