Why is it That the "Rich Get Richer?"

Say you are a successful entrepreneur and founder of a company that has a cash flow of $1,000,000/year, of that the profit is $600,000. Since you have presented that you are making an amazing return on your investment, many people will listen to what you have to say. People value opinions from successful people because they have “proof” of their success.

I think it really comes down to the fact that when people are established and have had well known success, other opportunities are presented to the successful entrepreneurs. Think about it, if you were starting a company from scratch and had a chance to present your ideas to 5 people in the business world, who would they be? Would you present them to any business person or if you could, would you present it to someone who created a great enterprise? It is exactly how it works in the business world. Entrepreneurs involved in new business ventures always present their ideas to other successful entrepreneurs because they want not only their capital, but knowledge as well, invested in the venture. I believe since established entrepreneurs have numerous opportunities presented to them involuntarily, and over time become involved in various ventures, it is why “The rich keep getting richer.”

If you also ask any successful business person, “What do you do for a living?” They will probably reply with numerous ventures they are involved in. Take a look at Warren Buffett for example. He is involved in numerous ventures and is known as the “Greatest Investor” because he has investments in anything from Candy stores to some of the most influential companies around. Leading to the first idea, people listen to him because of his great knowledge and success. Warren Buffett is also a great example of how DIVERSIFIED income is a must. Many of his investments probably go bad, but most of them make a well above average return. Since his income is more spread out as an investor, he makes money from different sources, so not all of his “eggs are in one basket”.