With a net worth of $180.7 billion, according to Forbes’ Real Time Net Worth, Jeff Bezos is one of the richest people in the world. While he made a lot of money as the founder of Amazon, smart investments and an unstoppable mindset also helped grow his wealth.
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The billionaire takes a lead worth following when it comes to investing.
Diversified Portfolio
While Bezos has made a massive profit off Amazon shares, he also owns a diverse collection of companies, including The Washington Post and Blue Origin, and he invests in many other companies through Bezos Expeditions, his family office. Those investments include a real estate platform, education and tech. He follows the old advice, never put all your eggs in one basket, and has a diverse portfolio as a result.
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Long-Term Investing
Short-term investments have the potential for fast returns and offer great liquidity, but there can be a price to pay. For one thing, short-term investing requires more time and research. In addition, inflation and taxes can reduce the return, and you’ll pay high brokerage fees if you make broker-assistance trades.
Long-term investments can provide steady growth and compound gains, which add up over time. This seems to be the strategy Bezos prefers. He’s held several of his current positions in companies like Airbnb, Basecamp, Business Insider and Uber for 10 years or longer, according to The Motley Fool.
He takes the big picture approach, riding out the market’s ups and downs, and he doesn’t panic sell during a volatile wave.
Make a Difference
Shaquille O’Neal has plenty of experience investing and is no stranger to success, but the former superstar athlete looked to Bezos for advice on his latest endeavor, Campus, an online community college.
“I heard Jeff Bezos say, if you invest in things that’s going to change people’s lives, you’ll always get a great return on your investment,” he told Fortune.
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This article originally appeared on GOBankingRates.com: 3 Investing Tips Jeff Bezos Swears By
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