Another way to think about it is that wealth is in the Equity.
And you basically have 4 primary ways to build equity.
- You can buy shares in publicly traded companies. Aka, invest in the stock market.
Both Nadia and Phil talk a lot about how to get into this in detail when you’re based in Trinidad & Tobago, and it’s a lot easier to get started than most people think.
- You can invest in real estate and develop a portfolio of properties. This is one of the more capital-intensive ways to do it, but it is a viable option if you have the capital and into that kind of thing.
- My favorite is in private businesses as it is the vehicle I understand best and the one that has worked for me. I also like the stock market, but the returns of private businesses are significantly higher, and you get better leverage over the longer term. But, it does require more skill.
- Intellectual property. Things like patents, trademarks, and copyright materials are generally what people refer to as IP.
However, content is the name of the game currently, as awareness and attention are valuable, so if you can build a name for yourself within a specific space through content, this is also valuable if you can effectively make money from it.
If you have tech skills like coding and can create software that people are willing to pay to use and you can protect it, this is also extremely valuable. Creative forms of IP like music, art and literary work can all be beneficial if you know how to market and distribute it effectively.
The idea is to have a little bit of everything; that’s what the entire concept of building a portfolio is about. But the most important thing to do is just to start where you are, with what you have, and do it in the space you understand the most because, as cliched as it sounds, the most valuable investment is in yourself and the knowledge and skills you can develop.