15 ASSETS THAT ARE MAKING PEOPLE RICH
Most of our community is interested in Building Wealth. So, I took a look at what makes up the portfolio of most 15 assets that are making people Rich.
Welcome to a cvsingh.com the place where future Billionaire’s come to get inspired if you’re not subscribed yet, Subscribe. Most of our community is interested in building wealth, so I took a look at what makes up the portfolio of most rich individuals. This one isn’t focused on how to make money instead of what you do with the money coming in to fortify your wells buckle up a lecture. You’re about to receive one hell of an education today, but first, the super basics for those of you knew to this terminology, you need to learn the difference between assets and liabilities, assets put money in your pocket liabilities cost you money the more assets, you have made money for you the Richer you are Pretty simple stuff right with that said here are 15 assets that are making the rich even richer.
Straight-up cash in a bank deposit is earning your interest pretty straightforward. The downside is the interest paid up by banks these days is even keeping up with inflation. But cash is still a priority. Apple company has over 200 billion dollars in cash reserves that’s liquidity. So why do rich people keep such a good portion of their wealth? Wealth in cash reserves two reasons.
- Being able to access any opportunity that presents itself which is pretty self-explanatory. If you think about it, the deal of your dreams is in front of you and you don’t have the money to take advantage of it. This is one of the main reasons why rich people save cash.
- They can get higher returns straight from cash deals. Not only do people offer better pricing for cash, but you can also lend money with high interest. This practice is called peer-to-peer. Your lenses if you’re low on income and willing to take the risk, there are plenty of platforms out there that offer peer to peer lending Services. Basically you lend people your money and they pay you back with interest. The average bank is offering under 1 % interest on your deposit while peer-to-peer lending fluctuates from 7 to as high as 15 to 20% Please keep in mind that if something is too good to be true. It probably maintains a rational mind whenever investing.
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This is a big one. I personally love real estate. That can be in your 15 assets that are making people Rich. Why once again two reasons?
- First rent money is coming in every single month with a minimum amount of work. If you’re a bit smarter, you can take advantage of the technology improvements happening right now and instead of traditional guys do short term rental for higher yields, but it isn’t as passive.
- The second argument is appreciation population numbers are going up even with the Coronavirus outbreak and more and more people need a place to live or rent. The demand is increasing so prices for properties are constantly going up and they forever well making real estate. One of the best investments one could possibly make in terms of real estate assets.
- The people of one residential building live in your properties and pay you to rent.
- Office Buildings people work in your property and pay you to rent.
- Commercial buildings businesses use your space to sell stuff and pay you.
- Correct for land which can be cultivated developed or even left for appreciation super important the house you live in isn’t an asset. It’s a liability. It costs you money to live in it while it isn’t putting any new money in your pocket.
Nowadays the government’s businesses might be in need of cash. They can issue up something called bonds, which gets sold to the interested investors through these bonds the government or the business vows to pay the person buying the bonds a certain amount of money. Every month generally bonds have an expiry date on them from one month up to 30 years. These are super safe Investments because they’re mostly backed by the government. But as you probably know by now low-risk and business translates to low rewards as well BONDS are usually in the 3% yearly return, right which is better than most banks offer but not high enough to get a beginner investor excited when the bond reaches its end of the principal amount is returns the investor the main ways people by bonds are one directly from the Treasury Department or to through a brokerage firm.
Stocks are not as complicated as those Wall Street firms make you believe stocks are an easy way for you to own a percentage of a publicly-traded Vistas if business issues, 10 million shares and you own 1 million of those chairs. You’re a 10% owner in the business this incredible breakthrough in financial instruments as allowed the average person to own a stake in some of the most lucrative companies in our day with very low entry barriers here is how much you need to pay to purchase one share into these companies. There are many platforms out there that allow you to purchase this type of share and invested in the stock market the most common and trending platforms for buying and trading stocks right now.
Stocks should be in your 15 assets that are making people Rich.
BEST STOCK BROKERS IN INDIA
MUTUAL & INDEX FUNDS
If stocks allow you to purchase shares in a company one by one mutual fund and index funds bring in multiple companies together. So, you’re buying into the entire basket of companies as a whole.
Why is this better? Basically, you’re more Diversified. So it’s a safer investment to make statistically index funds are the best performing asset, class.
The five most popular index funds in the United States are the following in no particular order.
- Vanguard Total Stock Market Index (VTSMX)
- Fidelity Total Stock Market Index (FSTMX)
- Vanguard S&P 500 ETF (VOO)
- Schwab U.S. Small-Cap ETF (SCHA)
- Vanguard High Dividend Yield ETF (VYM)
The fifteen most popular index funds in India are the following in no particular order.
|Sr. No.||Index Fund||Index||Launched||Issuer|
|1||Birla Sun Life Index Fund||NIFTY 50||Sep-02||Birla Sun Life AMC Ltd.|
|2||DSP BlackRock Equal NIFTY 50 Fund||NIFTY 50 Equal Weight Index||Oct-2017||DSP BlackRock Mutual Fund|
|3||Franklin India Index Fund – NSE Nifty Plan||NIFTY 50||Jun-00||Franklin Templeton AMC (India) Private Ltd.|
|4||HDFC Index Fund – Nifty Plan||NIFTY 50||Jul-02||HDFC AMC Ltd.|
|5||ICICI Prudential Nifty Index Fund||NIFTY 50||Feb-02||ICICI Prudential AMC Ltd.|
|6||ICICI Prudential Nifty Next 50 Index Fund||NIFTY Next 50||Jun – 10||ICICI Prudential AMC Ltd.|
|7||IDBI Nifty Index Fund||NIFTY 50||Jun-10||IDBI Asset Management Ltd.|
|8||IDBI Nifty Junior Index Fund||NIFTY Next 50||Sep-10||IDBI Asset Management Ltd.|
|9||IDFC Nifty Fund||NIFTY 50||May-10||IDFC AMC Ltd.|
|10||LIC MF Index Fund – Nifty||NIFTY 50||Nov-02||LIC Mutual Fund AMC Ltd.|
|11||Principal Index Fund – Midcap||NIFTY Free Float Midcap 100||Jul-99||Principal PNB AMC Private Ltd.|
|12||Principal Index Fund – Nifty||NIFTY 50||May-14||Principal PNB AMC Private Ltd.|
|13||Reliance Index Fund – Nifty Plan||NIFTY 50||Sep-10||Reliance Nippon Life Asset Management Ltd|
|14||SBI Nifty Index Fund||NIFTY 50||Dec-01||SBI Funds Management Ltd.|
|15||Tata Index Fund – Nifty Plan||NIFTY 50||Feb-03||Tata AMC Private Ltd.|
You’re statistically more likely to screw up. You’re not going to be one of those Miracle traders that beats the market here over here and you don’t have that kind of info and it’s super complicated to try and compete with the big boys. That’s where index funds come in S&P 500 brings together the best 500 performing companies when a company falls off the top 500 gets replaced with a new great performing one the average annualized total return for the S&P 500 index over the past 90 years is 9 .8 percent out of the five mentioned Vanguard is our top pick index funds should be in every portfolio of everyone who’s looking to build Wells long-term. Same in NSE Indices, India it’s a package of top 50 companies in India when companies fall off the top 50 gets replaced with a new great performing one.
Equipments are anything that generates money for you or helps you make money faster is considered an asset. If you’re a farmer the tractor is an asset if you’re a programmer the laptop is an asset if you’re an Uber driver your car is an asset whether or not something is an asset or a liability changes depending on if it had a direct correlation to the money you’re generating unless your income is directly dependent on the car buying one count as a liability. It’s very often that people confuse the two they try to justify it as an asset when in reality. They’re missing managing their own finances due to the lack of self-control.
You don’t need the most expensive laptop on the market to watch YouTube videos, maybe Some point in the future, we’ll make a video on the differences between current and non-current assets and how those affect your accountant but for the time being, we’re keeping it simple.
Patents are awesome, for those of you unfamiliar with them when you invent something new you can protect your invention by filing a patent. It’s a document that certifies you as the inventor and describes in detail what your invention has done with this protection in place companies have to pay money in order to use your Innovation. If they don’t you get to sue them patents are incredibly powerful and valuable in the Business World a single patent can make you rich and all the best inventions are backed by patents just to put things into perspective here are most of the US patents received last year.
Patents are good for 15 assets that are making people Rich.
If patents your invention trademarks protect your symbols words or phrases. It’s pretty obvious why this is a big deal when it comes to the logo or the name of a brand but here’s where things get super interesting. If you own a valuable trademark that has a marketable value. You can license its people to use it for commercial purposes and they pay you in return our all-time favorite story is the one of Michael Buffer who would 1992 trademarked the catchphrase you can now see on your screen. It’s super catchy.
- Entertain how it sounds and every single time it said in a commercial manner, you need to write a check to Michael since trademarking at he’s made over 400 million dollars just from one catchphrase Beyoncé trademark the name of her daughter Blue Ivy Carter before she was born just to make sure nobody uses it commercially trademarks can be local or International but good luck enforcing it and just to keep things interesting one in five us companies say there are companies in China infringing on their intellectual property. This is actually one of the main reasons why China has been growing so quickly to complete disregard for intellectual property rights. China is stealing over 600 billion dollars in IP from the rest of the world every single year. But anyway, let’s get back to the assets that make you rich.
BRAND & GOODWILL
There are several differences between brand and Goodwill but brands are super valuable to any business that has the footprint a company leaves in the minds of consumers. What stands for and what they present themselves as being goodwill is the emotional affection people have towards your brand a brand is owned. It’s an effort. The company is making to push a particular image of itself into the marketplace Goodwill comes from the way the company treats its customers the positive impact it has on the community and how grateful people are the company exists. Goodwill is super hard to cultivate or scale but people will literally save companies from bankruptcy because of the Goodwill they have for it.
There are companies that became incredibly successful just through branding alone the Kardashians. Family is a great example of this. But if Kim is Kylie attach their name to anything they can drive sales like nobody else. We’re not sure of Kylie’s lip kits are actually any better than her competition, but it made her a billionaire. Also, remember when Kim Kardashian made over a million dollars per minute from her Kim Mochi app. That was nuts. Of course. There are other examples that might even drive this narrative better. Take a simple black T-shirt. You can buy them for less than two dollars a pop but put a Disney logo on them. Now that will be ten dollars just because of the intangible value the brand brings to the item.
You don’t realize just how valuable an asset people are until they leave very few people to understand that companies aren’t actually real companies are a figment of our imagination validated by the state companies are names ideas and The Innovation happening under this imaginary umbrella and who comes up with all of these it’s the People a single person can shift a company with their ideas. Just look at the impact replacing Steve Jobs with the former Pepsi CEO had on the company nearly bankrupting.
What is today? Probably the most loved technology brand digging deeper into Apple their lead product designer Johnny IV design the products that are now in the hands of billions of people. Then there are the teams that make a company as a whole there have been cases when bigger companies have acquired startups just to bring those people in there’s actually a term for it.
It’s called aqua higher. Ideally, nobody in your company should be Irreplaceable. But the harder to replace some people are and the more valuable of an asset they are to you. So make sure they know they’re appreciated hire the right people and they’ll make you rich we’ve been lucky enough to have some amazing people in our team most of them sticking around since the beginning and we’ve enjoyed taking this journey together. Who knows maybe someday you’ll get to meet them.
All over the world business, men are using people in their 15 assets that are making people Rich.
RAW MATERIALS & COMMODITIES
The price of raw materials and commodities fluctuates and varies depending on the market. If you’re smart about it, you buy it when it’s cheap hold it and sell it when it’s in high demand this applies to everything in life from currency to oil to Gold to crypto to luxury cars and art over the past 15 years. The price of gold has increased by 278% This might come as a shock to most of you but we love art as an alternative asset class very few people know this but art has been outperforming the S&P for the past 20 years. This is one of the big reasons why you see wealthy people dropping stupid amounts of money on art because it’s making them even richer the same goes with a vintage car while your car is costing you money. Some of the wealthiest people in the world are buying a rare vintage car that is quickly appreciating in value.
The same goes for other Collectibles like luxury watches and now before you go and blow all of your money on a vintage Rolex because you read some post on Quora about how they double in value over time. You might want to take a breather never invest in things. You don’t understand. It’s one of the most important rules of money disobey it and you will never be rich
BOOKS, SONGS, DIGITAL COURSES, INFORMATION OR CONTENTS
Information is an incredible thing to be selling because Infinitely scalable you write the book once and you can sell it a million times same goes for a digital course a song or any other type of info or digital product creating and distributing such an asset increases not only the value of the business but can make you very rich.
The hands of as many people as you can with music, it’s even more interesting. Why because you only have to get it right once and you can literally be set for life Gangnam Style is a great example sign made over ten million dollars just from that one song distributed via YouTube and iTunes not to mention merch shows the licensing and so on Mariah Carey makes around 500,000 dollars every single year from one hit songs you all know and love all I wanted. I want for Christmas that song alone has made her overs 16 million dollars.
The 3 Assets Everyone Should Invest in Their 20s
We’ve rushed a bit on royalties on the previous points, but there is an entire world were revolving around them the simplest way to put it is you wrote a book. That’s great a movie studio wants to buy the rights to your book and make a TV show out of it in exchange. You’re getting a portion of the money generated. Let’s say the TV show is friends you made a ton of money already the show wraps up after 12 seasons and you’re already rich, but it doesn’t stop there. There is a term called syndication. It’s when a TV show becomes so big it makes sense to open it up to multiple broadcasters keeping up with the friend’s example the cast of the TV show is still earning to this day between 10 and 20 million dollars per year each from the reruns of the show.
That’s insane the most recent big hit is The Big Bang Theory which got a multi-billion dollar deal with HBO to have exclusivity until 2028 boil. He’s applied to everything that has to do with your intellectual property royalties made George Lucas a billionaire when he proposed Star Wars to them. They didn’t give it much thought assuming it was likely to flop instead of paying George $500,000 in director spacewalks allowed Lucas to maintain the licensing and Merchandising rights long story short the movies and massive success and by 2011 the toys and merch I’ve brought in over three billion dollars in order to make up for their mistakes Disney bought out Lucasfilm’s for four billion dollars and it took Disney just six years to recoup their investment.
We wanted to mention this because there are instances where some parties might have an unfair competitive Advantage which counts as an asset. For example, there’s something called the Indian gaming regulatory Act Which grants India natives the rights to all types of gambling activities regulated under state law anything from specialty licenses to geographical advantages can be considered as an asset if it grants you a competitive advantage in the marketplace.
- The church is another example since they don’t have to pay taxes and this happens all over the world in Eastern Europe almost every church is run like a business. They have products merge services that cost money all tax-exempt the same goes for art museums and fraternal organizations
FIRST MOVER ADVANTAGE & PROPRIETARY BUSINESS MODELS
Whenever you innovate in a commercial manner, this Innovation is regarded as an asset the app store by Apple is one of those Innovations, the microtransactions and games are a Nouveau business model fact that Netflix & Amazon evolved from delivering solid DVDs to a streaming service has been regarded as a very valuable asset for the company it gave them the edge to capture market share while One else was on the sidelines. It took a couple of years for the remaining companies to catch up and now streaming services are everywhere the same happened to music. You used to purchase physical albums then digital albums. Now, you just pay for Spotify title or YouTube premium Airbnb disrupted the hotel industry was a new way to rent short-term accommodations.
TIME MONEY TIME ARBITRAGE
TIME MONEY TIME ARBITRAGE is coming article on my website, where I will teach you About Time Money Time Arbitrage.
Have a look at TIME MONEY TIME ARBITRAGE.
Time Money Time Arbitrage is one of those things they don’t teach you in business school. But if you pay attention, it’s probably the most valuable thing you’ll ever learn at this point.
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