Wealth Growth is like a Poker Game
If there is a way to describe the wealth growth in simple phrase, i would say Wealth Growth is like a Poker Game.
Let me explain in details:
1- Wealth growth require taking risks:
Your chips will not grow if you fold every round, you will have to take risks to win.
Wealth wise, investments are a requirement for wealth growth (with very few types of exceptions).
Entrepreneurship requires taking risks, Investments requires taking risks.
That’s why even the very rich, invest in investment companies and funds to take risks on their behalf.
2- The more money you have the more you can take risks:
The more chips you have on the table, the more you can call the bets, to continue playing a hand, and chase your luck. If you only have few chips, you can not afford to join every hand played.
Same applies for wealth, the poor stay poor mainly because they can not afford to take risks. While the rich get richer because they can afford to take many risks, even if many of them fail.
3- Be ready to follow-up on your initial investment, and put whatever is needed:
When you play a hand, you will need to keep calling (adding chips to the pool) if you want to stay in the game. If you pass on adding chips you will be out and will no have a chance to win the pool of chips.
In investment or entrepreneurship, it is very frequent that the initial investment needs to be followed-up. The investment might need a second or even third and fourth round of funding to grow or not fail.
4- Be ready to quit or pass when necessary:
Sometimes you are dealt a hand that looks promising, but after the flop is revealed, not so much. Unless you are planning to bluff, it’s better to pass on big raises by others.
Same apply to wealth growth, some investments turn out to be just a waste of money, and it’s better to shut them, than wasting more money.
5- Experience and analysis are important:
When to call, when to pass, when to raise and when to bluff … Playing and winning in poker requires that you master the game and be able to do a proper analysis for each hand.
Wealth growth is easier for those that have some experience in doing that. In addition to experience, each investment opportunity should be thoroughly analyzed.
