"He says too many people think the rich are wealthy because they have some secrets they use to get that way. But Ramsey says, "well let me tell you what the secrets of the rich are: they're not a secret." Rather, what they do is grounded in simple common sense because they focus on what they understand."
"Ramsey uses the example of a rancher he knows who is worth $200 million. He doesn't do anything special. Instead he invests primarily in farmland, his area of expertise."
"Ramsey emphasizes that investing in things you understand is paramount and cautions against chasing "cool" investment opportunities, especially those recommended by friends or acquaintances who may not have the expertise to guide you. In particular, he noted the infamous Bernie Madoff Ponzi scheme was able to draw in so many people because they thought they were getting in on a some super secret scheme only available to select individuals to make money, but it was just the same old fraud people have used forever."
Building wealth depends on common-sense investing in assets that align with personal knowledge and comfort. Many people mistakenly chase supposed secrets, trendy opportunities, or complex instruments instead of focusing on core competencies. Successful wealth accumulation centers on familiar assets such as business ownership and paid-off real estate, as well as investments within one’s area of expertise. Blindly following recommendations from acquaintances or opaque advisers increases exposure to fraud and Ponzi schemes. A KISS approach—keeping investments simple, transparent, and understandable—reduces risk and supports steady, sustainable financial growth.
Read at 24/7 Wall St.
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