The richest man in the world lived 500 years ago and was probably a German. But his wise tips are so universal that they still apply today.
In the 15th century he was considered the most influential and wealthy banker in Europe: Jakob Fugger from the tranquil Augsburg managed to amass a huge fortune. The businessman is said to have owned around 365 billion euros by today’s standards. With his innovative business spirit, he revolutionized the economy and supported kings and popes financially.
Even today – 500 years later – his business ideas and convictions are still being implemented. His approach to building a successful business coincides in astonishing way with the tips of many today’s financial moguls. Here are seven pieces of valuable advice on how to get rich .
Invest in and despite times of crisis
According to the finance portal, Fugger thought ahead and also took risks . This enabled him to win two big deals that made him really rich .
In the first case, he financed Duke Siegmund of Tyrol when he was at odds with Venice. The latter intended to take over the little duchy. To break free, Siegmund needed money. But the banks at the time refused. Fugger seized the moment and stepped in. He raised money from sponsors such as family members and friends and bailed the duke out . In return, he gave him the right to use a silver mine as a thank you.
Second , Fugger allegedly invested in copper mines in Hungary . At that time, however, many feared that the Turks might invade the country and preferred to keep their hands off the mines. In addition to the lucrative silver business, he also entered the copper business. The Turks marched in – but only after Fugger had died. And the saying still applies today on the stock exchange that stocks should be bought even more when losses are threatened .
Be indispensable for your business partners
Fugger was rich – but he also had his fingers, and especially his ears, all over the place. This means that if one of his noble “friends” was in financial difficulties, he was there immediately – and helped them out with a loan . Though he was unpopular for his strict business practices, they all came to him when they needed money quickly.
Always know about all business
Knowledge is power – this saying was worth gold 500 years ago. And Jakob Fugger already knew back then how important the right information is for business . According to “Marketwatch”, he is said to have always known what the market looks like.
He is even said to have founded the world’s first intelligence service in order to receive the most important reports from competitors. So he knew about everything – and thus avoided financial losses.
For example, he learned from his spies in England that Henry VII never sent ships loaded with gold to Emperor Maximilian. But that was what the latter had claimed – in return he was supposed to support Heinrich in the fight against the French. But the ships never set sail.
Know your business figures
Bookkeeping is a tiresome topic for many – but if you want to run a flourishing business, you also have to know your (red) and black numbers. Allegedly, the Italians invented double-entry bookkeeping, according to the finance portal .
And since Fugger was in the picture about everything, he knew the system from Venice and is said to have been the first to use it on this side. In addition, according to “Marketwatch”, he is also said to have been the first to send inspectors into his mines and other shops in order to always be informed about everything.
Keep educating yourself
But Jakob Fugger didn’t just want to rest on his golden laurels – he also wanted to continue his education so as not to lose touch in matters of trade and the like. That is why the businessman was in Venice, the economic capital of the time, for a few years. There he studied the markets and quickly got to know important people in his business, from whom he was later able to benefit.
Always present yourself calmly
With most of his money pouring into his mines, Fugger soon ran into financial problems. He hardly had any liquid money. That is why he got into trouble when an Austrian bishop deposited a large sum of money with him. When he died, the Pope immediately asked for the money back.
But Fugger couldn’t pay him off. But since he knew that a public bust a disgrace among its partners and would be bad for his image , he showed himself generous and paid the money back. But not without first negotiating a deal that wouldn’t let him go bankrupt.
Always give something back to others
Even if the market was very competitive 500 years ago and ultimately made Jakob Fugger very rich, he did not forget his roots. He is considered to be the founder of the Fuggerei in his hometown Augsburg, the first social housing estate in the world .
As a strict Christian, he took his duty of charity very seriously and gave the poor a roof over their heads. The Fuggerei still exists today – it has been well preserved and is still a place of refuge for many in old age at affordable prices.
