The Power of Gradually Accumulated Capital

Whoever “they” are, they don’t lie when they spew what has admittedly become somewhat of a cliché in saying that success leaves clues. It definitely does and it’s just up to those of us who want to attain it to learn how to read those clues and implement the lessons learned thereof. There are so many different case studies we could explore as far as this goes, but in today’s post we’re going to focus on one specific area, which is that of capital.

More specifically, we’re going to be focussing on that kind of capital which has been accumulated gradually over time, through sheer determination, hard-work, and braving the many storms that come with being in business. The power contained in the capital which has been accumulated gradually is significantly greater than that which is in the hands of someone who might recently come into a significant windfall, for a number of reasons.

More cautious spending

Even if you operated as an individual, you’re more likely to be cautious with the spending or investment of any capital which you’ve built up gradually over the years than that which might have come to you more instantly. There is reason to be cautious with any capital one has and we can learn to be cautious with any capital we have as a takeaway from the spending and investment patterns of those individuals and groups of people in charge of the capital built up over time.

Backed by years and maybe even decades of experience

The likes of Fashion logistics Italy makes for a perfect example of how gradually accumulated capital is inherently smart capital in that the acquisition of an enterprise that was already in operation for three decades by a company such as Metal House would have undoubtedly been a decision which is based on years of experience in the field. The people who come together to make the decision to purchase would have accumulated years of practical business and technical experience themselves as part of their operations to gradually accumulate the capital they now have to spend on ventures such as acquisitions of this nature.

It takes a concerted effort to put it to use

Gradually accumulated capital is often the result of a concerted effort as opposed to it being accumulated by an individual, even though there are indeed many cases of it being accumulated by an individual. As a result, it would take a concerted effort to put the capital to use, which makes it a lot “safer” since it requires the input of more than a few people to put it to use. It becomes immune to the stupidity and impulse of one person, which is perhaps the reason why you never really hear of stories of some conglomerate having built up a fortune, blown it and then perhaps going on to build it up for the second or third time.

That’s often only the case with individuals – it’s just harder to spend some money which is under the control of many people.