be a good investment

Rich liked ratios because as he said, you can tell a lot just by a little comparison. To rich said, ratios were simply comparisons, just as a P/E ratio is simply a comparison. When it came to money, rich said, one of the main reasons the poor and middle class struggle is because their ratios have no leverage. He would use the ratio 1:1 to illustrate the leverage ratio of a poor or middle class person.

Rich will be showed the following ratios.

Businesses                                 1:5

Workers                                     1:300

Real estate                                  1:450

Dollars                                       1:6 million

Shares                                        1:2 million

In other words, his business ration meant he owned interests in five businesses. He had over 300 workers working for him. In real estate, he had over 450 tenants and that did not include his industrial real estate, stores or restaurants. As the years went on, the numbers on the right side of the ratio continually increased which is why he got richer and richer, while working less and less.

The poor person ration started out at 1:1 and ended with 1:1 which is why he got poorer and poorer. As you can tell by the leverage ratio, the poor people believed in a day’s pay for day’s work. There were times the poor worked at two different jobs. Even though he worked two jobs, his ratio remained at 1:1 according to the rich person definition. The rich said, if most people have two jobs, they are just working more hours at the same ratio.