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Six ways the rich really do get richer

5. Buy low and sell high – easier if you’re rich

Nati Harnik/AP/File
Warren Buffett, chairman and CEO of Berkshire Hathaway, gestures during an interview in May in Omaha, Neb. Mr. Buffett, who is fighting to raise taxes on the super-wealthy, has profited handsomely in the past by buying when other people are panicking.

The greatest advantage the rich have over the not-so-rich is the ability to capitalize on bad times. Whether it’s cars, boats, houses, stocks – even household help – prices plummet as demand drops and supply increases. If you’re one of the huddled masses, you’re focused on staying alive until next week. Those with the cash have the ability to focus on the future, buying low now to sell high years from now.

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