Gregory Curtis, Chairman of Greycourt & Co., says if you want to build wealth, there are three tips that can get you there.
There’s comfortable. And then there’s being rich.
If you want to build wealth and be in the latter category, there are three tips that can get you there and you don't have to be a millionaire to follow them.
So says Gregory Curtis, Chairman of Greycourt & Co. As someone who manages $9 billion, Curtis knows a thing or two about attaining wealth and keeping it.
Curtis also authored the book “The Stewardship of Wealth: Successful Private Wealth Management for Investors and Their Advisors”. Curtis also sits on the investment committees for several private institutions including Carnegie Mellon University and was former chairman of the Pittsburgh Foundation.
“The building of wealth, the management of wealth, and the deployment of wealth are activities that lie at the very heart of what has made America great,” writes Curtis in his book.
How, then, does someone start? In his interview with Talking Numbers, Curtis provides his three tips to building wealth anyone can follow. They are not “get rich quick” schemes but they are a bit different than what’s usually seen from most wealth advisors.
Three keys to building wealth
1. Think first about risk and then about return
Curtis says: “Focus on risk first. Get your risk budget down. Know how much risk you can take and then it’s time to think about return. If we do it the other way around, we’re human beings and we’re all going to get a little greedy. The first thing you know, we’re going to be way out there on the risk spectrum. When the markets turn, we’re going to get hurt really badly. That’s the key: Start with risk, and then go to return.”
2. Diversify investments
Curtis says: “The basic principle of diversification is that we’re not as smart as we think we are. Things are going to come out of the blue and hit us when we don’t need it. Diversify as broadly as you’re comfortable doing it. Theoretically, you should own practically every investible asset in the world. Most of us are not going to get there, but don’t just stick to US stocks and bonds like so many people do. It’s been a great place to be recently – in US stocks, anyway – but it’s not always the best place to be. You’ve got to diversify more broadly than that because just cannot perceive the future.”
3. Always be alert for great opportunities
Curtis says: “Most of those opportunities I found over time don’t just come from market events themselves. They tend to come from the reactions of other investors who are getting way too greedy pumping markets up or they’re getting way too fearful and bailing out of markets. They create terrific opportunities. You’ve got to sit and wait for those opportunities to come. You’ve got to be patient. But, when they’re there, you’ve got to be willing to take advantage of them.”
For more, watch the video above.