Title: How to Be Rich
Author: J.Paul Getty
Publisher: Jove (1986)
BOOKS DIGEST SUMMARY:
This triumph is an authoritative voice on life as an entrepreneur. The author, now deceased multi billionaire oil magnate J.Paul Getty, focuses on the difficulties in the world of business that an entrepreneur must overcome to achieve great success. Using real life and personal examples, J.Paul Getty weaves beautiful and memorable stories of entrepreneurial spirit in the face of adversity amongst a wealth of sound advice from someone who has been there and done that. An absolute read for anyone who aspires to great things. Encouraging, touching and inspiring are but three words to sum up this book and also the life of a great man who dared to achieve more than mediocrity.
• Preface :- The importance of being rich as opposed to getting rich
The preface is an important chapter to read because it helps to lay down the foundations for the rest of the book. And this particular preface was especially profound for it challenges the reader to change his or her conceptualisation of money. The preface argues that business people and employees are too focused on getting rich and living a life of conspicuous consumption. J.Paul Getty argues that true wealth is merely a state of mind and that true riches should rather be associated with character instead of material possessions.
The preface also exposes the fallacy of the ‘get rich quick’ mentality and highlights that there are no secrets or magic tricks that can make a business person an overnight meteoric success. Equally profound, J.Paul Getty makes an association between true riches and helping others by improving the living standards of all through entrepreneurial activity.
Standout quote:
“After all, ‘richness’ is at least as much a matter of character, of philosophy, outlook and attitude, as it is of money. The ‘millionaire mentality’ is not-and in this day and age, cannot be-merely an accumulative mentality”- page vii
Part one:-
The primary section discussed the crucial importance of interpersonal skills. The author recounts on his experience as a wildcatter (an independent oil producer) in the 1920s managing a team of workers. Instead of wearing a suit and drinking hot chocolate in a warm office, Mr Getty was out in the fields with his men most of the time. This is significant because “the men felt they were partners with the boss in a mutual effort, rather than merely employees of some corporation run by executives”.
The theme of treating your workers with kindness, fairness and respect is bought up again when debating the prevailing attitude towards labour in American industry during the 1920 boom years. The author is horrified by the laissez-faire attitude taken by many an executive towards the well-being of labour and ruthlessness shown towards Labour Unions. Mr Getty eloquently argues that for health of the American free-enterprise economy to continue labour must be paid their fair worth. After all, without a prosperous working class “there can no mass-markets and no mass sales for merchants or manufacturers”.
Repelled by the short sightedness of executives, as shown by their attitude and treatment towards labour, Mr Getty also condemns in equal measure the pale mediocrity that is accepted by society. The author laments that “the Millionaire Mindset is rarely found” and highlights that the brightest students out of the top business schools are, without such a mentality, merely “over glorified clerks”. Mr Getty defines such a valuable mindset as being “cost conscious and profit minded” and above all, a frame of mind that enables individuals to become motivated enough to achieve set goals.
A final interesting point to raise is that Mr Getty focuses on the value in ‘thinking small’. Such an attitude doesn’t contrast to ‘thinking big’ but rather emphasises the necessity to pay attention to the details.
Standout quote:
“In my opinion…it’s more important to be able to think small-in the sense that he gives meticulous attention to even the smallest details and misses no opportunity to reduce costs in his own or his employer’s business”.
Part two:-
This section elaborates further on the value of treating workers with respect and stresses the importance of gaining results through people. Through this dialogue, the author exposes the myth of the ‘lone entrepreneur’ and firmly states that business is all about networks and therefore, people. How to get the most out of your people is a rare skill that is nurtured and refined through experience. Mr Getty gives the reader a valuable insight into how one can go about achieving this; “I gave no orders or instructions without explanation, meticulously avoided meddling, but was always ready to lend a hand on even the messiest and most difficult tasks”. Such behaviour results in a working with rather than working for philosophy in the company that strengthens the team. The section warns budding executives and entrepreneurs the dangers in the ‘quod licet jovi, non licet bovi’ mentality being adopted in the workplace. The Latin phrase means “what is permitted the gods is not permitted the cattle”.
The latter section discusses the importance in making correct decisions in crisis situations. J.Paul Getty reminisces on tough decisions that he had to make quickly and states the importance of good judgement and imaginative foresight. He makes an interesting analogy by comparing the world of business with chess; in the sense that one must always think three steps ahead.
Standout quote:-
“The successful businessman is the individual who develops the ability to retain his composure in times of stress and in the face of setbacks”.
Part three:-
In this section, Mr Getty laments the state of the education system and lack of cultural awareness amongst the American populous. He attributes the over-specialisation philosophy in education and the pseudo-macho mentality to be contributing factors to such a disease. “Schools and colleges do their not-inconsiderable bit by producing overspecialised graduates whose knowledge and horizons are severely limited”. The author reflects on this phenomenon and concludes that the result will be a more regimented society that is associated more with dictatorship in the future.
Standout quote:-
“ The would be individualist will carefully examine his motives for wanting something and ask himself whether he is making his choice because it is safe, secure, easy”.
Part four:-
In this section, the author shares the sentiments of Robert Kiyosaki by discussing the ‘art of investment’. Fundamental strategies of investing in stocks, real estate and art are touched upon. Again, the author rubbishes the notion of ‘get rich quick schemes’; “ignore the advice of promoters who peddle harebrained formulas for making huge and quick profits on the stock market”.
Standout quote:-
“ I’m seldom eager to sell simply for the sake of making a quick profit”
Part five:-
In the shortest section of the book, part five focuses on three main themes. Firstly, the concept of money, the importance of individuality and the benefit in having values which one abides by. The former touches on points discussed in the preface; that riches shouldn’t be associated with material possessions but rather riches should be tools to further enhance the health of one’s business. J.Paul Getty also highlights that many business people are worth much less than their perceived wealth because the dominant part of their entrepreneurial activity is merely made up of ‘paper empires’.
In the second theme, Mr Getty makes a distinction between those led by fear and those by love. Those individuals who are led by fear tend to conform to what the majority perceive to be the norm. This strangles development in the long run and doesn’t promote a healthy workplace; since everyone is forcing themselves to be people they aren’t. “The majority often has a tendency to plod slowly or to mill around helplessly. The non-conformist businessman who follows his own counsel often reaps fantastic rewards”.
The final theme highlights the crucial importance of having values and purposes for riches. The author makes it clear that earning money for the sake of earning money is indeed a very shallow existence. This doesn’t lead to real happiness because money doesn’t end up with any enduring value and fulfilment is never reached. True wealth comes from being aware that money isn’t an end, rather a means to achieve a more positive goal.
Standout quote:-
“To be truly rich, a man must live by his own values. If those values are not personally meaningful, then no amount of money gained can hide the emptiness of a life without them”.
