Everyone approaches money differently and the way in which the world's richest people operate and decide is always fascinating.
But what is it that makes them stand out and what are the things that they do differently from us.
Trey Lockerbie, CEO of Better Booch and host of the "We Study Billionaires" podcast, attempts to answer this question in an article on CNBC.
Lockerbie says he has interviewed 25 billionaires and more than 100 self-made millionaires, including prominent investors such as Howard Marks and Cathie Woods.
Nothing to chance
“What did I learn from them? For starters, rich people don't have a “lottery mentality” – or the belief that there's a shortcut to instant wealth thanks to luck” he highlights and breaks down the three habits they adopt that anyone can adopt:
1. Rich people don't act out of fear or impulse.
The most financially successful people have a passion for solving puzzles — and they treat the stock market the same way.
"When I interviewed billionaire Howard Marks, co-founder of Oaktree Capital Management, we talked about how he navigated turbulent times like the Great Recession and the early days of the pandemic," Lockerbie writes, adding, "Instead of making decisions based on fear, he said he focused on the data and the potential opportunities, rather than the risks or downsides."
Using this approach, he made a successful bet on distressed corporate debt during the 2008 financial crisis, which netted Oaktree investors about $6 billion in profits.
"If you're faced with uncertainty, Marks recommends taking emotions out of the equation and looking for ways to make the circumstances work for you."
2. Rich people are patient and think long term.
One of Warren Buffett's biggest success factors is that he invests in businesses that have the potential to grow in value for decades into the future, regardless of what their stock prices may be at any given time.
Many billionaires admire Buffett's approach and the patience it requires. At a conference, Airbnb co-founder Brian Chesky talked about an unforgettable meal he had with Jeff Bezos and Buffett.
During that lunch, Bezos recalled one of his first meetings with Buffett, in which he asked him, “Your investment thesis is so simple. Why isn't everyone copying you?'
"Because nobody wants to get rich slowly," Buffett replied.
3. Rich people say "no" more than they say "yes."
Mr. Lockerbie also reports that he recently interviewed billionaire David Rubenstein, co-founder of private equity firm Carlyle Group. He is a philanthropist who serves as chairman on several boards. He is also the author of three books and the host of PBS's "History with David Rubenstein."
When asked how he accomplishes so much, he was quick to list all the things he doesn't do: He doesn't play golf, he doesn't drink alcohol, he doesn't binge watch Netflix. He avoids all the things that he thinks are wasting his time.
Billionaire Jesse Itzler agrees about the power of saying no. Itzler is the co-founder of Marquis Jet, one of the largest private jet companies in the world, a partner in Zico Coconut Water, founder of The 100 Mile Group, and owner of the NBA's Atlanta Hawks.
"Your 20s and 30s are a great time to say yes," she told him in a podcast interview. “You want to network, gain exposure and create. But your late 40s and beyond are a great time to say 'no' and take full control of your time."
His advice for saying "no" to someone gracefully? “Go on with something amazing. Send a dessert or pay the bill. Choosing not to do something doesn't mean you have to be out of the game."
SOURCE: in.gr