Wednesday, October 4, 2017


Welcome brothers to a new video of my channel brothersindividends, as always, I invite you to subscribe so you can receive my most recent videos, as soon as I publish them.
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As you already know, the objective of my channel is explaining ways in which I try to earn money.
I think one of the best ways to do so is learning how others did it before, and in this video we will talk about one of the best money earners to ever exist, John D. Rockefeller.
John Rockefeller was born in New York, in a middle class family, his father was a conflictive character, but his mother was a strong support in his life.
He was of jewish origin but protestant faith, with rigid calvinist values.
Since he was young he showed ample aptitude for business, at 16 he already traded in grains, then he moved on to coffee and finally to oil, where he would make his incredible fortune.
He is probably the richest man in history, as his fortune was worth 1.5% of the GDP of the USA in his time. This would be the equivalent of 340 billion dollars nowadays, almost the net worth of the 5 richest people in the world right now.
He died of extraordinarily old age for his time, 97.
Rockefeller once said "... let the money be my slave and not make myself a slave to money.", something other successful people like Warren Buffett or Kiyosaki also apply.
That means, rather than focusing on working for a salary all my life, it is better to save some money and by investing it, start earning more money through rents, dividends, etc.
Another of his quotes is "I would rather earn 1% off a 100 people's efforts than 100% of my own efforts".
Similarly meaning, it is better making our investments in companies produce money  for us, thus earning part of the effort of all its employees, rather than just earning money from our own salary.
He said "The way to make money is to buy when blood is running in the streets. ", not literally of course, but meaning that it is in times of great crisis when we can make the purchases at extraordinary prices that make the great fortunes.
A great example of this is what made Carlos Slim for many years the richest man in the world; the tequila effect arrived to méxico and their stockmarket sunk like a rock, a time Slim used to purchase some of the best companies in his country by getting into enormous debt.
Rockefeller saw spending relative to investment; let's say that for example he wanted to buy a car: he wouldn't spend money he extracted from his investments to purchase it immediately, but rather, he would buy it the moment the dividends from his investments generated this money.
Talking to a neighbour, Rockefeller said "Do you know the only thing that gives me pleasure? It's to see my dividends coming in".
And it is because once retired he could sit calmly enjoying his life while his shares continue earning money for him, which provided him with extraordinary calm and well-being.
One of the values he most appreciated was perseverance, he said "I do not think that there is any other quality so essential to success of any kind as the quality of perseverance. It overcomes almost everything, even nature."
As such, when Rockefeller wanted to hire someone, he could always choose among the best, but among these there were always a few qualities he always required, and one of these was perseverance.
He firmly believed that unless you believe in yourself, nobody will; this is the road to reach success.
And this is telling because he was a man with plenty of people against him, he bankrupted many in the process of amassing 90% of the oil business in the USA, which at the time was like saying the world's oil business. By the end of his life he fought against the american government too. Without this strength of character and belief in himself he wouldn't have overcome such pressure.
Rockefeller applied extreme darwinism to industry and business, believing that the growth of business is achieved through the survival of the apt alone. He explained this with the parable of the rose, which in essence said that we could only make the most beautiful roses grow by nipping the bulbs around them while they grow. He didn't consider this evil or negative, but a natural and divine law. As such, only the most apt companies survive, and those that can't addapt to the markets would dissapear.
An extraordinary person from whom we can learn plenty, I take from him in particular the key factor that is investment, and making the dividends from investing my savings pay for my expenses, rather than my savings themselves, although there are many other lessons to learn from him.
As always, no matter what you do, best of luck in your investments.

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