DISCLAIMER: WE ARE NOT (Triple M, Barry Urquhart or Marketing Focus) giving any financial advice. This is just the framework and principles for what may work for you if you are structured, disciplined and focused.
Building a financial fortune, money that you can live comfortably off in retirement, may appear unattainable to you. However, it can be achieved, and Barry Urquhart from Marketing Focus can arm you with the tools you need to carve your destiny.
You don’t need heaps of income or a large inheritance. The main factor you need is time… and of course compound interest.
To begin, what not to do! Many of us get caught up in ventures or investments that simply do not have sustainable long term growth. Barry Urquhart explains on the Breakfast Program with Sean on Triple M.
“Unfortunately a lot of people are financially illiterate and they end up chasing high risk investments, bitcoin, penny dreadful mining companies and that sort of thing.”
Mr Urquhart believes to inform and direct those chasing abundant wealth, the starting point needs to be Warren Buffet’s famous book, The Richest Man in Babylon, as it teaches “discipline and structure to (your) spending patterns”
The basic principles offered in the book are explained by Barry:
“Take your earnings, set aside ten percent, invest that money into shares or investments that are going to give you a return. Now, the secret is don’t spend your dividends, take your dividends and reinvest those dividends, typically if it’s in equities or shares you reinvest in the shares that have paid the dividends and then it comes down to a fundamental principle, compound interest. So now you’re getting interest on your interest.”
The concept has obviously worked for Mr. Buffett. He is the third richest man in the world and the richest investor (as of the beginning of 2018).
Compound interest only works to devastating effects if you give it time.
“Slow and steady wins the race… plan long, manage short. What that’s saying is you have to have a long-term vision… make sure you look after your cash flow because when in business or in life you start to run out of money, you run out of time and when you run out of time and money you run out of business and financial liquidity. That’s a problem. So, don’t chase the miracles, start to be disciplined, identify what it is you do want to invest, stay there for the longer term.”
He says that you don’t want to focus on speculative, rather invest in services and products. Commodities are out but essentials are in. Well-established and rudimental companies are sound investments because you can guarantee a long term growth and therefore a consistent return on investment. “He (Warren Buffest) invests in financial institutions, insurance companies, he invests in railway lines.”
Barry also says research is important.
“Make informed decisions, don’t spontaneously say ‘ooo I’ve heard of that on a whisper’ you never buy on rumour”
Having a distribution of shares, a portfolio that spans several industries ensures that you spread your risk, so long as the industries are sustainable long-term.
“Where are the growth areas? (They) will always be finance, tourism hospitality, housing and construction and more particularly today aged care and aged health, now there is a good spread of companies and sectors that are going to be continuously growing in Australia, and then you research the companies that are operating within those industries, make your selections, seek out advice, go to your financial planner your stock brokers, take council and then make a considered decision.”
And it’s as simple as that.
Just if you make it big, let me have a slice of your fortune cake.
To hear the full interview that Sean had with Barry Urquhart on the Breakfast Program please go to the following link!