Scalability - the key to becoming wealthy

Every generation needs a revolution - an entrepreneurial revolution

I have seen some businesses of my progeny.  They invest in rental properties.    I doubt whether they can be wealthy doing this.

This reminds me of a story about a story of a Chinese businessman in Central Luzon whose initial business was selling office supplies.   He was selling to a govt office engaged in lending to residential homes.  So he bought and sold residential units one at a time.  Someone advised him he would not get rich that way.  The only way to be wealthy as a realtor is to develop large residential subdivision.  Which he

did 

This similar to inventions that can be patented or whose production can be controlled.  A potato farmer became rich by inventing a machine that peels potatoes by the millions.

I saw Australian businessman building hundreds of houses.  Only workers?  Himself and a secretary.  Everything else is contracted out

Can you think of scalable business?

Losers from digital currency game, extraordinary income, financial instruments and scam

Every generation needs a revolution - an entrepreneurial revolution

I had a batchmate who used to work in a multilateral banking institutions who  was rumored to have lost her shirt playing the digital currency game.   She was supposed to have parlayed  P500K up to P10M, but eventually losing all.   Now she is rumored to be borrowing money and or inducing others to invest in such currency.  This is not the first case of somebody losing money just like in a casino to such a venture.

I have always maintained that I will invest only in a business I fully understand.  Thus No no for me are:

     1.  stock market and its derivatives

     2.  derivatives

     3.  hedge funds

     4.  digital currency

     5.  Fx

Only geniuses like Warren Buffett (and they are not too many of them) can digest and absorb vast amounts data.  And George Soros too.  We mortals are bound to fail. in these ventures.

   1.  A judge got his placements from us worth P500K to invest in stock market.  Six months after I met

        him and said he lost the whole amount in six months

   2.  The neighbor of daughter at a condo  (they own a factory)  lost P300K in digital currency.   

If it is too good to be true, then it is .  

Beware too of extra ordinary income.   Familiar with KAPA scam, etc where many people lost zillions.  Nothing ever happened with the investigation

An investor, an entrepreneur has got to know his/her limitation.  (Make my day)

The first generation creates it (business enterprise) the second generation enjoys it, and the third generation destroys it

Every generation needs a revolution - an entrepreneurial revolution

This was the topic of anecdotal research we did for a famous Mary Lady Professor (a foreigner) while I was in second year college.  

Indeed in my experience while as a first generation entrepreneur (or were they my parents?  But I was the one who put up many of the enterprises) the second generation, my children seem to have lost track of the original mission ie to create jobs and employment and to be in the service of others.  The second genration is not so keen in developing business skills and talents needed to be successful

The scions find satisfaction in:   having big balances at banks and showing this off, buying luxury real estate, travel abroad  good food

I still want to be frugal, hard working with the staff, sticking to the basics.  I hope the scions can come to their senses and be first generation creatures