The Richest and Their Investing Secrets – Amancio Ortega

Amancio Ortega is the founder of the Zara boutique chain and one of the richest Europeans. His fortune is estimated at $70 billion. Unlike many billionaires, Ortega was not born into a wealthy family – he was the fourth child of a poor railway worker. In spite of that, he amassed a huge fortune. What are the investment secrets of Amancio Ortega?

1. Ortega started when he was very young. At the age of fourteen he left school to help his father support his family. He worked in a small tailor’s shop, while learning how to sew. For many years, Ortega was a regular employee, starting his first business only in his thirties.
2. The first shop was supposed to be a family business. Ortega opened his first Zara boutique with his first wife and often stressed that he considered that business to be the provision for the future for his family.
3. Ortega adopted a specific strategy for developing his boutiques. According to what he believed, the decor and the specific atmosphere of an outlet itself was supposed to attract customers. So, he bought premises in the most expensive districts of cities, he took special care to ensure that the shop window looks perfect, while customer service quality and the boutique design had to be top-notch. However, he didn’t buy any ads on billboards, in newspapers or on TV.
4. The entrepreneur was convinced that a low price guarantees high profits. Characteristic for Ortega’s business was that he offered high-quality products, in luxurious venues at affordable prices. So, they attracted lower-middle-class customers who wanted luxury, but simply couldn’t afford to shop in other, more expensive boutiques.
5. Ortega always listened to the comments and advice of his customers. He was known for improving his products as soon as he heard rumours of unsatisfactory quality in one of the segments. Ortega often changed the elements of a collection or a cut if their quality turned out to be lower than assumed or even if there were opinions that a given product was uncomfortable.
6. Although theoretically the businessman has already retired, he still comes to work every day. Ortega has worked practically throughout his life and even after passing the management to his deputy, he still has the final word. Only after his death is the company to be taken over by his daughter.

Ortega’s way of doing business seems to be interesting, but it’s hard to say whether it’s adjusted to the requirements of modern times. You should bear in mind that this billionaire developed his company in a period where competition on the clothing market was not that fierce and advertising didn’t play as important a role as it does nowadays. Today, when making a controversial decision not to advertise traditionally or online, most businesses are doomed to rapid bankruptcy.

Regardless of how we assess his approach, Ortega is one of the most interesting businesspeople, as he has earned his own fortune almost from scratch. He is also a proof that you can become an entrepreneur at any age and be one for the rest of your life. And although one could say that it’s mainly due to workaholism, in retrospect the old-fashioned and meticulous approach of Amancio Ortega has definitely paid off.