The Accumulation of Riches

Riches are the organized effort of expanding company service/value fueled by profit (monetary and non-monetary) to team members, customers, and suppliers. The company generating money and profit (it's profit getting) exists to sustain, develop and reproduce more expanding service value to the customer, team members, and suppliers who are organized towards the same chief aim and thus profit from it. As it is in biology, so it is with business. The business exists to expand - not contract. Its chief purpose is expanding life, as is with the human. Maintenance is a given. Without maintenance, decline begins. But it is with the other functions in biology of DEVELOPMENT and EXPANSION that the core importance of business delivering value and service in all of its delivery and communication mechanisms can be found.

To the extent that you and the organized effort of your team can deliver value to the appropriate people in massive quantities - is the extent and speed to which the company will 'get rich'. This is easiest done when the value is self evident to the individuals purchasing and as part of the team. 

It is also important to have team members who are VALUABLE to the function they serve to add value to the service creation process of the company - but can perhaps be had and added to the team at a discount. Perhaps they do not require money at all, but rather a chance to grow and recognition. 

Perhaps they identify with the VALUE of the company that it delivers. The service it delivers. In essence, you want, as Einstein said, people of VALUE on your team that are FIT and suited (fit, in terms of evolutionary FITness) for the position in which they are desired to provide value and service upon in the company. 

But to whatever extent necessary, the value creation must be over and above the monetary price paid. Every man must fill his space. The best tenor singer should, in a meritocracy, be the tenor and so forth. To claim a place that is ill suited for your best 'fit' is disgraceful to the purpose of business. Deserving has nothing to do with a meritocracy, nor should it. The company is for service - not profit. Profit is necessary to fuel the value creation process and begets more value creation processing to the extent that it has profit to fuel that process. But excess profit is not the end in itself. It is expanding service. That is how riches are amassed...and not simply monetary either. 

Any attempt to take profit out of the company and use it for ones own selfish means is wasteful to the purpose of business. The rich are massively rich because of expanding service, not dilution or contraction of value and service renderings. Very few people are deserving of wealth in this respect. No matter though. The principles of wealth accumulation are inevitable, and those who follow them inevitably amass massive asset riches. And it is not due, again, to contraction of company profits though dividends. It is due to expansion and leverage of service.

Notice you, as an owner, are not mentioned above in 'getting rich'. Getting rich has nothing to do with you. You are simply the steward of money for a short while. You claim ownership because you know how to deliver more value and service than anyone in your respective area for the good of that area and its return on the price/value ratio. 

Your wealth is a claim check on society - nothing more or less. In end, it goes back to whence it came. As Felix Dennis wrote: "We are nothing but merchant princes". The money isn't important. It's the service value delivered through the money that is the purpose. This was clearly evident in the Gospel of Wealth by Andrew Carnegie. Truly, your role is in the opportunity and vision recognition, culture development and talent recognition. 

Talent is your number one priority with 'walking into' a price/value discrepancy or massively mispriced bet being the focus. 'Price' refers to whatever one 'pays' in time, effort, energy, and a million other 'payments' or 'currencies'...ONE of which is monetary currency called money. It is a convenient tangible symbol of exchanged value with some writing on it. But...price/value discrepancy leveraged to deliver the service on a greater scale. This is the bread and butter. To the extent, AGAIN, that you can organize effort to massively deliver on price/value - is the extent to which money flows.

The elimination of waste is noble. Any increase in friction in the company's price/value equation that makes more difficult the acquisition of your value deliverance is a disgrace. To the extent that there is no extra 'fat' on the service value delivered in delivery or communication, is the extent to which profits are allowed to flow through clean arteries.

The mechanics may change from business to business, industry to industry...but the richest companies (and subsequently their asset rich owners) are using the exact same principles of wealth used by Carnegie, Ford, Buffett and the like.

And lastly, the 'secret sauce' that is the common denominator of those who are truly wealthy - once all the aforementioned is in place - is OWNERSHIP. When/If you sell, you are selling a service value creation company that deliver xyz (insert any products/services result) through the continuing fueling of profit. The continual maintenance, development (of the company and its parts), and reproduction is the job of management. The business serves YOUR need to service.

So...the selling of such a company should command an excessively larger profit than can be had in its current place of return and a greater ownership of value delivery and communication, or the profit should not be taken and the service value company should go on unchanged for the betterment of its main purpose. 

If you or the buyer cannot do better with the profit and company, respectively, gained from sale...then the sale is truly a disservice to everyone involved (the team, the customer and so forth). If it IS a useful exchange, then the value should be exchanged between parties. It is the creation of greater masses and accelerations of value that should drive the decision - not greed, fear, envy - or simply any emotional misjudgment. 

Using the 5 basic emotions of happiness, sadness, fear, anger and disgust to gauge a situation is healthy - so long as you aren't USED by these emotions. Logic should be the only determinant...not the emotional misjudgment of territory (in terms of general semantics 'map vs. territory').