“Some people are born into families that encourage education; others are against it. Some are born into flourishing economies encouraging entrepreneurship; others are born into war and destitution. I want you to be successful, and I want you to earn it. However, realize that not all success is because of hard work, and not all poverty is because of laziness. Keep this in mind when judging people, including yourself.” Morgan Housel, The Psychology of Money

 

 

 

From the desk of Richard Du, Founder and Chairman of SANTOS Holdings:

 

The vast city skyline, visible from my office window, filled my sight and thoughts as I considered the future of SANTOS Holdings. As the company’s founder and chairman, my goal was to build a $5 billion real estate portfolio in five years. However, I realized financial expertise alone wasn’t enough to reach this goal. It was going to take a lot more. Human behavior and strong, confident decision-making are fundamental to success in real estate development. Emotions, personal narratives, and societal influences uniquely shaped the financial landscape. In developing my strategy, I considered the key principles I had learned about money psychology. Here are a few:

 

– Smarter financial choices begin with understanding your own financial habits and attitudes.

– Our feelings about money are as important as our understanding of it.

– Our mindset negatively affects our financial well-being.

– Balancing fear and uncertainty with financial goals is crucial.

– Managing wealth requires acknowledging the emotional element of investing.

– Understanding money psychology can benefit your financial well-being.

– Sound economic principles are key to immediate financial success and lasting happiness.

 

I have seen the worst decisions and deals gone wrong because I did not understand the mindset of money and investing. Over time, as a leader, I grew to understand money and now understand that our financial wins and losses result from decisions influenced by our psychology of money. While chance affects our financial wins and losses, we frequently underestimate how much luck, behavior, and risk contribute to investing.

 

To address this, I organized behavioral finance workshops for my team. “It’s not just about numbers,” I explained. “Understanding how people think and feel about money is the key ingredient.”  

 

As we progressed with our initiatives at Santos Holdings, the team grew attuned to the psychological aspects of their work, learning to communicate on a deeper personal level with potential investors. Throughout our client relationships, I insisted that my sales team shift their approach by learning about their aspirations, fears, and goals. Instead of hitting them over the head with a sales pitch, I encourage my team to get to know their clients on a much deeper level. This encouraged our clients to open up and allowed our team to learn, understand, and strategize specific plans to serve better our client’s needs to succeed.

 

On the right track, I promoted sustainable, long-term growth, advocating for mixed-use developments that combine housing, businesses, and recreational areas. These projects enriched Manhattan’s character. Afterward, when SANTOS Holdings attracted significant capital, I implemented a policy of allocating profits to a reserve fund. As we progressed towards our ambitious goals, I reminded my team that psychology, mindset, luck, and risk play important roles in the money psychology of the real estate market.

 

Along with that initiative, I advocated a balanced portfolio to mitigate risks and capitalize on opportunities. At a final team meeting, I explained how we had learned how to navigate the complexities of money, creating lasting value for ourselves and our clients.

 

Refreshed and determined, the team appeared eager to begin the next phase of our journey at Santos Holdings. Today, we are confident in our resources, understanding of human behavior, and the power of collective teamwork to achieve our long-term company goals.

 

If you are interested in learning more about SANTOS Holdings’ offerings, contact us today to explore the immense possibilities.