Success StrategiesYoung Entrepreneurs

Young Entrepreneurs: Part III. The Key

By February 25, 2010 One Comment

Those who don’t dream, don’t win.

Two true stories- Warren Buffett’s and Mr Reese’s*- illustrate how one man became one of the greatest philanthropists in history who is still building his fortune, with self-respect and a healthy view of money, while another man went from poor to rich and back to poor again as he gives away everything he owns because he doesn’t understand the real value of money.

Both Buffett and Reese* entered the field of business with similar backgrounds: having grown up in the poverty consciousness of the Great Depression. They were both able to create fortunes of different  financial levels, but all wealthy people agree that it is just one step for a multimillionaire to become a billionaire. It is simply a matter of business expansion to progress to new, yet similar, areas. The biggest step before letting in cash flow is knowing the purpose one wants to create fortune for, and having the mindset of wealth creation – the skill that lets billionaires who lose their fortune regain it.

Warren Buffett has said about business, and which is a foundation for every success:

“You should have knowledge of how business operates and the language of business, some enthusiasm for the subject and QUALITIES OF TEMPERAMENT, which may be more important than IQ points. These will enable you to think independently and to avoid various forms of mass hysteria that infect the investment makers from time to time.”

Two Men

Concentrating on the opposite value of money :

Buffett – Money is productive, can be used to solve some major world problems if used well by intelligent investments (like the Melinda and Bill Gates Foundation), and can be built up to a substantial level (multibillion dollar fortune).

Reese* – Money is evil, counterproductive, creates differences in societies, can isolate rich people, can be responsible for raising the level of poverty in societies.

Different purposes of wealth creation :

Buffett – To seek pleasure in business and investment, to seek partnerships, to learn and expand.

Reese* – To avoid the pain and poverty of his past (what you concentrate on expands in your life; focus creates results).

Different understanding  of money :

Buffett – Money is a tool and the human experience should always come first, material things come next, money is a reward only.

Reese* – Money creates a different reality, no internal stability. Robert Kiyosaki once said: “If you don’t first handle fear and desire, and you get rich, you’ll only be a high-paid slave.”

Similar concerns of the wellbeing of the planet and people: both men are givers – Warren Buffett gave more than $30.7 billion, Mr Reese gave $5 million.

How they see philanthropy : Both men see that the best philanthropy is in educating people how to become independent. Warren Buffett doesn’t let his children inherit his entire fortune, knowing that money has the power to build and to destroy. Mr. Reese creates a microcredit charity that supports new small businesses in South America.

Different conclusions from poor past : Mr. Reese* feels a lot of guilt, while Warren Buffett tries to  solve the problems of the world with his wealth.

What creates true greatness? What are the characteristics of lasting wealth and happiness? What are your thoughts on the similarities and differences of these two men and the consequences of their actions and beliefs around wealth?

* his real name has been changed to protect his privacy

To read the Part I of the story click here:  “Young Entrepreneurs

To read the Part II of the story click here: “Young Entrepreneurs

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