In Roger James Hamilton’s book, The Millionaire Master Plan, and specifically in Chapter 6, “Player to Performer” in the Enterprise Prism, we learn that many of the conventional ideas around wealth are misguided. I find it interesting by comparing those myths with Warren Buffett.

Myth #1: Wealth Comes from Passive Income

The idea that passive income alone creates wealth is one of the most popular modern myths. People believe that by having assets like stocks, real estate, or businesses, they can sit back and watch the money roll in. The reality, however, is that all income requires management. Even so-called “passive” income needs a strategy, a team, or specialized know-how to maintain and grow it. Warren Buffett doesn’t just sit back and collect dividends — he goes to the office every day to work, refining his investment strategies and managing his companies. His wealth grows because he actively engages with his investments.

Myth #2: Wealth Comes from Multiple Streams of Income

Many people think that having multiple streams of income is the path to riches. The truth is, we all have limited attention and energy. Instead of managing several streams of income, Buffett shows us the power of focusing on growing teams, not streams. He owns a multitude of cash-generating enterprises, but each company is managed by a team of capable CEOs who handle daily operations. Buffett’s real wealth comes from having equity in these businesses and trusting excellent teams to manage them.

Myth #3: Wealth Comes from Your Exit Strategy

A common belief is that you need a great exit strategy to build wealth — sell your business or assets at the right time and you’ll strike gold. But Buffett has a different approach. He believes that you want to keep working because you love what you do. For Buffett, wealth is not about cashing out but continuing to be actively involved in something that brings fulfillment. Even at 93 years old, he’s still tap dancing to work, because he enjoys the journey, not just the destination.

Myth #4: Wealth Comes from Being Your Own Boss

Many aspire to become their own boss, thinking this is the ultimate freedom. But the truth is, we are always accountable to someone — customers, shareholders, or team members. Buffett, despite being a billionaire, is accountable to his shareholders. Every year, he writes letters to them and opens himself up to tough questions at annual meetings. True freedom isn’t about having no boss; it’s about choosing the right people to be accountable to.

Myth #5: Wealth Comes from Risking It All

The saying “big risks bring big rewards” is often touted as a wealth-building strategy. But in reality, wealth is built through planning and preparation, not reckless risk. Buffett is known for sticking to his circle of competence. He doesn’t take wild risks or venture into uncharted territories. Instead, he grows wealth by making calculated decisions within areas he deeply understands.