They rely on a system to achieve incremental wealth growth. Many wealth seekers choose this approach but as it is also the slowest, they get itchy feet and move on before they achieve the success they hoped for.
And they often go unnoticed. Warren Buffet is possibly the world?s most well known accumulator. When Buffett appeared on the TV program, Money World, he was asked what investment advice he would give a money manager starting out. "I'd tell him to do exactly what I did 40-odd years ago, which is to learn about every company in the United States that has publicly traded securities." Moderator Adam Smith said, "But there are 27,000 public companies." Buffett replied, "Well, start with the A's."
Rather than making money by buying and selling off waves, they make money by buying and holding on rising tides. Accumulators always prepare and the most successful ones can be found doing their homework. As Warren Buffett said in an annual report, "Noah did not start building the Ark when it was raining."
If the profiles were compared to a football team, the Stars would be the strikers while the Accumulators would be the keepers. While Stars are quick to spend, Accumulators are quick to save.
They rarely act on impulse, and fail if they have not set the criteria to take action. Often accused of procrastinating, they simply need more data to make an informed decision.
They ensure that everything is in order and that what needs to get done gets done on time. Successful Accumulators are happy to remain down-to-earth, holding the kite strings while others fly high.
Warren Buffett, Benjamin Graham, Sandy Weill, Li Ka Shing and Paul Allen
Warren Buffett saw himself as a capital allocator, where his input could support the intrinsic value growth of a company. He began by repeating the formula of buying a controlling stake of undervalued companies then adding value and seeing his investment grow. By keeping to his strategies, Buffett has achieved a 22.2% compound growth rate over 40 years.
Accumulators are activity and data based. They ask "When?" and "How?" "When is the right time to act?" "How will this be built?" "How will we ensure that this happens?"
They are reliable, careful and deliver on time, but they often procrastinate and can be slow to build up momentum.