The rich get richer every day, the middle class stagnate, and the poor get poorer. Rich people can identify and snatch opportunities. In 2020, some of the world billionaires have lost a lot of money due to the COVID-19 pandemic. But that has not prevented other billionaires such as Jeff Bezos from making more billions. Even as the money markets get shaky with and the price pf oil plummets, the rich still hold their cool and make plans to invest even more in the coming years.
Invest in Yourself and Your Family
Without the right skills, is there anything you can do to better yourself financially? The rich believe in learning at every step of the way. Although Bill Gates has scaled the heights in his business dealings, he still reads books on business and self-development. On his Instagram account, Bill is ever sharing books he is reading.
Self-improvement requires constant learning. Even when you have an education, you still need to learn more skills of the trade. This involves not only reading books but also buying courses that will help you perform better in your profession. If your field is engineering, you need to learn more about that.
You also need to invest in family because without them, you may not even have reason to work towards your goals.
Investing in New Innovations
Instead of investing in companies that have been in operation for a very long time, the rich invest in new innovative businesses or innovations in existing businesses. Existing businesses (those close to the top) have minimal room for growth. While the returns from investing in established businesses are more stable, they may not be as much as from new innovative business.
If, for instance, a company innovates a revolutionary portable solar generator, the rich do their research to find the market potential of the product. They may also look into other innovative products such drill presses. Today, drill presses and portable solar generators have seen so much growth with many new products coming into the market. The drill presses in this list, for instance, have a lot of new features. If the wealthy do their research and see that the drill presses and generators have so much growth potential, they invest in the companies that produce them.
In other cases, the rich invest in innovations and not just wait for other companies to come up with the innovations. This can be seen in products such as Amazon Alexa. Amazon is an online marketplace yet the company went ahead and produced a voice assistant. This helps the rich to keep their businesses relevant and to draw in more returns.
Diversify the Investment Portfolio
This is another great theme. Instead of putting all your eggs in one basket, you should diversity to catch returns from different investment avenues. After thorough research, the rich seldom lose money in their trades. However, not all trading platforms will bring returns as expected. If some ventures fail, others gain.
2020 Investment Opportunities
2020 is the election year in the U.S. This is one of the worst years for investors but there are still ventures you can take part with good research. These include 5G, Blockchain, companies that take part in elections, Big Pharma (thanks to the Corona Virus pandemic), Minimum Volatility, and many more. If you choose 5G, for instance, look for companies that will benefits from this innovation, such as Cisco.