Kasz216 said:
richardhutnik said:
List the categories of people who are extremely wealthy and how they got the wealth. On that, about the only thing that a person can bring to a table that would not be considered luck is an irrational determination to keep trying over and over, combined with a humility to back off when persistence in an area that would never pan out. Everything else comes from things they didn't bring. Individuals can look to move to areas where the chance of positive outcomes is superior. Money afford this more than a lack of it. Same thing with a person like Trump, who established a large number of connections. More resources afford more ability to take chances. But the thing about chance is that it is out of your control.
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List the categories of people who are extremly wealth and how they got their wealth.... ok.
1) Inventors - They got their wealth by inventing something people needed through their own foresight of what the market needed.
2) Buisness founders - They got their wealth by creating a company and providing a good or servie that people needed, and possibly/probably got bought out by a bigger group that had the momey to take advantage of it.
3) Legacy people - These are the people who are lucky. Like the Hiltons, or the Waltons... as is seen though, "a fool and his money are soon parted."
4) Hedge Fund managers - These people got their wealth by smart investing, hedge fund managers generally don't get paid unless those who they invest for get paid.
5) Atheletes - These people get wealth from an extreme dedication to a sport at a young age sacificing their childhood and by hiring the right trainers to mold them into "super atheletes".
6) Regular Ceos - Go through extensive training and then have to prove they are the best when it comes to the management world.
7) People who win the lotto. See 3.
8) Dictators and other corrupt officials in regimes - they usually apply good political sense, charisma, force of will and leadership abilties to take control of a country and loot it's wealth. Note how many dictators actually end up having "lowly" begginings.
9) Royal Shahs - See 3, except they are rich enough with oil money to never go broke.
Basically none fo this is chance, which is what you aren't getting. Taking risks =/= luck.
Outside of the lottery.
That someone decides to invent an unattractive sport and puts all their effort and money towards it, and it failing is not bad luck, because it was a bad idea to begin with.
You seem to be having a disconnect in that you think there are only two things in life, effort and luck... and that so long as you work towards an idea... even if it's a dumb one, so long as you simply care more, you should be successful. If you fail because your idea was dumb, well then it must be bad luck for you having such a dumb idea while other people were "lucky" enough to not have dumb ideas.
Your treating "I want to create a new sport that's basially hand table tennis" the same as "I want to create a portable music player that plays digitial music."
It would be comforting to think that way, but that's all it would be comforting, not true in any way. The truth is, every success and every failure, you can point to and realize "This is why they succeeded" or "This is why they failed."
To be super rich you need to "Work Smart" as well as hard.
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Take a look at all the above, and I can show you where they involve factors out of the control of the person who gets them where they are:
1) Inventors: There are PLENTY of inventors out there. Assuming they are fortunate enough to get a patent, and also have the right connections to get it to market, they would need to be lucky enough that what they invite has the right market conditions to become massively popular and in demand. When someone invents, they are trying to solve a problem. But no guarantee this solution is a golden ticket to becoming extremely wealthy, because the end result depends on market conditions breaking certain ways out of the control. This doesn't mean that someone can't invent something which has some demand, but MONSTER demand, and sales? Well that is a different animal completely.
2) Buisness founders: One can argue such an individual has the most control, but looking at how many businesses fail, there is a large degree of luck to match for longevity. An individual may not be able to get funding, because they are too far ahead of the curve, and others don't see the vision. Or, individuals end up going into a marketspace they got funded for, and it ends up being too late to the game. Of course, there is also self-funding, and working on a shoestring. But this will often end up
3) Legacy people - These are the people who are lucky: That is like 100% luck. Even in retaining this wealth, there is more than just the initial "lucky sperm club" (Wayne Allyn Root's term), the individuals would then hopefully be from a good family, didn't fall into drug usage, or develop other destructive habits that cost them their fortune.
4) Hedge Fund managers: Let me change what you wrote. Hedge Fund managers are paid to gamble with people's money, under the presumption that they have a magic understanding of things that make them superior to the average joe. They take risks, and try to mitigate risk, by rigging the odds in favor. They are still gambling, just try to better the odds. Of course, all it takes is one black swan to wipe them and everyone who invested with them out. Such individuals will rise to the top, by means of survivor bias, and seen as brilliant in retrospect. Hedge Fund managers operate under the presumption they can outperform a market consisting of a pool of smart people also. All this being true, individuals STILL can be remarkably stupid and crash and burn even faster. Yes, there is skill here, but to get WAY above normal market performance means taking obscene risks, where a LOT needs to break right an pan out. In short, they gambled, and got lucky. They say, historically, no one outperforms the market, and that pans out. You will look at the performance of individuals in the market, and look at individuals managing portfolio and they will be all over. You won't be able to predict for certain who will be on top starting now, just looking back.
Why do they say you can't outperform the market? Well, I would say it is part of the Delphi Effect, and wisdom of crowds where a large group will have more information than individuals, and a bunch of average people, so long as it is in the scope of their understanding, will generate a predictive outcome that is superior. Look into prediction markets for more information on this.
5) Atheletes: Lucky genes, plus luck to have the right family (nurture), and get the right coaching. Having the right make up, which comes from how one was raised, plus genetics, to NOT blow up, is also part of it. One can see how a simple twist of fate, and not having something to back up, can lead to a complete and total fall from the top. Mike Tyson loses his father figure, and Don King comes in and ruins him. Look at one train wreck after another, and then Buster Douglas hits and Mike falls from the top. The intimidation factor is gone, and the bully no longer can win by intimidation.
6) Regular Ceos: Happen to end up in the right social circles, and end up networking and have people like them. You will see a history of CEOs going from top of the world to getting canned, because of changes in market conditions they didn't have anything to do with. Similar happens in professional sports where a coach or manager gets with the right team, and things break right.
7) People who win the lotto. See 3: This is a more extreme version of people who play in the financial markets. They have no information, while the individuals in the financial markets, and play that casino, have some information, and can make some sound decisions... well, on the average. The extremes, which get people to the next level, are usually in bubbles. Also, individuals who win the lottery, will often have enough who never learned how to manage such money, so it all vanishes. They get stupid, because they just don't know what to do, and then people they know come out of the woodworks and they lose everything.
8) Dictators and other corrupt officials in regimes - they usually apply good political sense, charisma, force of will and leadership abilties to take control of a country and loot it's wealth: Basically war survivors.
9) Royal Shahs - See 3, except they are rich enough with oil money to never go broke: Definitely fits 3. Born into wealth.