The banking and financial industry is attracting many graduates from top universities around the world every year. The graduates are attracted by the high average income in this industry and the relatively high rate of income increases. However, is it the fastest way to win more wealth?
The most elite people can always accumulate their wealth faster than the others as they are more talented and have more capacity. But among these most elite people, what they are doing can differentiate their speeds of accumulating wealth. Innovation can help to accumulate a huge amount of wealth in a very short time period. Such example figures have Elon Musk, Bill Gates, Steve Jobs and etc. They win wealth from their intelligence, brain work that they do not accumulate their wealth like bankers and more likely to accumulate wealth faster than bankers. Bankers and investors accumulate their wealth from their pre-owned wealth. Although the number of super wealthy individuals is tiny compared with out entire population, when it comes to a great investment opportunity, each of such wealth individuals has to compete with each other to win the opportunity, so they have to lower their expected returns from this opportunity to attract the brain workers' favour to accept their investment. Therefore, the brain workers gain more wealth from their own work than their investors.
People may arugula that the super wealthy individuals have people like Warren Buffett, George Soros and many other investors. However, their successes not only depend on their great intelligence of great investment decision making, but also depend on their previous wealth accumulation. Therefore, their wealth is accumulated by a series of successful investment decisions. If they fail and make several big investment decisions, their success will be erased completely. As we can see from the 2008 Financial Crisis, some banks went bankruptcy because of their investment failures in mortgage bonds and MBS. However, the people who make efforts in innovation and technology development can make many failures, once they make one single successful achievement, they immediately win an enormous wealth from their success. Such example has Elon Musk. His initial success has helped him to accumulate huge wealth and credits for his success afterwards.
Overall, wealth accumulation in the banking and financial sector depends on a continuous series of success; while wealth accumulation in innovation and technology development depends on one single success, any failure before the success does not make any significant impact on their final wealth accumulation results.
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