Mind Your Own Business

Remember this simple observation: The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets.

So how do I start minding my own business? What is the answer? Listen to the founder of McDonald's.

Mind Your Own Business

In 1974, Ray Kroc, the founder of McDonald's, was asked to speak to the MBA class at the University of Texas at Austin. After a powerful and inspiring talk, the class adjourned and the students asked Ray if he would join them at their favorite hangout to have a few beers. Ray graciously accepted.

"What business am I in?" Ray asked, once the group had all their beers in hand. "Everyone laughed," said Keith. "Most of the MBA students thought Ray was just fooling around." No one answered, so Ray asked the question again. "What business do you think I'm in?" The students laughed again, and finally one brave soul yelled out, "Ray, who in the world does not know that you're in the hamburger business." Ray chuckled. "That is what I thought you would say." He paused and then quickly said: "Ladies and gentlemen, I'm not in the hamburger business. My business is real estate."

Keith said that Ray spent a good amount of time explaining his viewpoint. In their business plan, Ray knew that the primary business focus was to sell hamburger franchises, but what he never lost sight of was the location of each franchise. He knew that the real estate and its location was the most significant factor in the success of each franchise. Basically, the person that bought the franchise was also paying for, buying, the land under the franchise for Ray Kroc's organization.
McDonald's today is the largest single owner of real estate in the world, owning even more than the Catholic Church. Today, McDonald's owns some of the most valuable intersections and street corners in America, as well as in other parts of the world.
Keith said it was one of the most important lessons in his life. Today, Keith owns car washes, but his business is the real estate under those car washes.

Most people work for everyone else but themselves. They work first for the owners of the company, then for the government through taxes, and finally for the bank that owns their mortgage.