Lesson Three: Mind Your Own Business
- Keith said it was one of the most important lessons in his life. Today, Keith owns car washes, but his business is the real estate under those car washes.
- There is a big difference between your profession and your business. Often I ask people, “What is your business?” And they will say, “Oh I’m a banker.” Then I ask them if they own the bank? And they usually respond. “No, I work there.”
- To become financially secure, a person needs to mind their own business.
- The odds are against success: Nine out of 10 companies fail in five years. Of those that survive the first five years, nine out of every 10 of those eventually fail, as well.
So what kind of assets am I suggesting that you or your children acquire? In my world, real assets fall into several different categories:
1. Businesses that do not require my presence. I own them, but they are managed or run by other people. If I have to work there, it’s not a business. It becomes my job.
4. Mutual funds.
5. Income-generating real estate.
6. Notes (lOUs).
7. Royalties from intellectual property such as music, scripts, patents.
8. And anything else that has value, produces income or appreciates and has a ready market.