How to Get Rich, American Historian Explains the Ten Rules (cross-border guide)

Context

How to Get Rich, American Historian Explains the Ten Rules

Joseph Moore, in his essay 'How to Get Rich in American History', decodes the mechanisms of capital accumulation through the centuries. For the Swiss saver, these dynamics translate into precise tax and investment strategies, adaptable to the Swiss context.

Wealth is not an event, but the result of constant discipline applied to the rules of the market.

Operational checklist for the Swiss saver

• Optimization of the Third Pillar: maximum annual payment of CHF 7056 (for those affiliated to a pension fund) to reduce the tax base.
• Geographic diversification: investments in global ETFs to mitigate the currency risk of the strong franc.
• Choice of domicile: the tax burden varies drastically between cantons. For example, a taxpayer in Zug enjoys a significantly lower tax multiplier than in Geneva or Neuchâtel.

Analysis of practical scenarios

Consider an investment of 100,000 francs. In a balanced portfolio with an annual return of 5%, after 20 years you get about CHF 265,000. If the tax strategy is optimized by taking advantage of pension fund redemption plans (LPP), the tax savings can exceed 30% of the invested capital, exponentially accelerating the effect of compound interest.

Regulations and rates

It is essential to monitor the evolution of the Law

Operational details

The concentration strategy

Conventional financial wisdom suggests diversification as a shield against risk, but for those aiming for significant wealth, the reality is different.

According to Moore, most people don't get rich by diversifying, but by focusing on just one thing they're good at.

This approach requires extreme specialization. In Switzerland, this often results in the exploitation of niches with high added value. Think of the watchmaking districts in the Jura or the Basel biotech sector: the most successful entrepreneurs have not dispersed capital in heterogeneous assets, but have reinvested every franc in the optimisation of their core business.

Examples and practical scenarios

Consider the case of a startup in Zurich with a turnover of CHF 500,000. Diversifying by investing in low-yield residential real estate (about 2-3% per annum) limits growth. Reinvesting those same CHF 500,000 in research and development or acquiring market share often guarantees a return on investment (ROI) of more than 15%.

From a regulatory perspective, the Federal Law on Federal Direct Tax (LIFD) allows targeted deductions for business expenses necessary to earn income. Leveraging these tax levers to scale a specific business is more advantageous than paying taxes on dividends from passive investments.

Operational checklist

• Identify

Useful planning tools

To estimate your pension strategy, use the pension planner and the pillar 3 simulator.

Key points

Moore's calculated risk strategy

The famous American historian Niall Moore argues that wealth creation does not depend on luck, but on the ability to manage asymmetric risks. This is not blind speculation, like investing a lifetime's savings in volatile assets, but a methodical approach where the investor acts to actively influence the expected return.

"Risk is a strategic calculation, not a leap into the void."

In Switzerland, this translates into capital optimization through tax-efficient vehicles. Let's take the example of an entrepreneur in the Canton of Zug. Instead of keeping liquidity in a deposit account with near-zero returns, he could allocate 20% of his assets to a local start-up through a Holding. Thanks to federal and cantonal tax reform, taxation on dividends is reduced, allowing for faster reinvestment.

Here is an operational checklist for those who wish to apply this method:

• Risk profile analysis: Define a maximum tolerable loss that does not compromise the standard of living (e.g. maximum 5% of net assets).
• Regulatory analysis: Check the federal law on federal direct tax (LIFD) to understand the deductions applicable to venture capital investments.
• Geographical diversification: Do not limit yourself to the domestic market; balance Swiss securities (SMI) with international exposures to mitigate the

For a precise net salary calculation, use our tax comparator: compare take-home pay between G and B permits with all 2026 deductions.

Source: laregione.ch