How The Rich Get Rich?

Chapter 18

How The Rich Get Rich? Seriously!

We might have seen this equations:

• Wealth = Net Profit + Asset Value

But what’s underneath lies the true power of fastlane.

• Net Profits = Units Sold x Unit Profits (放大效應)

• Assets Value = Net Profit x Industry Multiple （市場價值）

第一個公式我稱它為放大效應。改變其中一個變數可以改變整體的產值。其實每個商業模式幾乎都依靠這個模式。But the point is - being in control. And a small change can lead to big difference.

第二個公式我稱他為市場價值。Like The Phycology of Money says about Assets. We need to re-evauate what assets really is - something that gains value overtime. A lamborghini’s value drops the moment it hits the road. A real estate, however, grows overtime (generally).