Foundations

When it comes to building wealth, there are two fundamental paths: either you own a lot of assets or others owe you a lot of money. While both focus on different ways of holding wealth, the former is rooted in the value of physical assets and the latter in the

In our previous discussion, we explored the two principal avenues to wealth-building: lending money or owning assets. Having delved deep into the intricacies of lending, we now turn our attention to the path of asset ownership. Assets can broadly be classified into two types: 1. Natural yielding / income-producing assets: This

In the world of managing wealth, there are two primary risks to look out for 1. The risk where everything is going great until you suddenly lose big: let’s call this tail-side risk. 2. Risk of fluctuations in the value of what you own - volatility risk. Let’s

We've dove into the concepts of wealth, asset types, and risk, but you might be wondering why these concepts are crucial. More specifically, why should you bother with investing if your goal is simply to preserve your wealth? The popular phrase "cash is king" may, on the surface, make it

As we've discussed at length, the acquisition of productive, income-generating assets is vital for successful wealth management; this includes both owning productive real assets (like equities) and lending (through instruments like bonds). But how should you divide your savings among these options? What percentage of your wealth should you allocate