There are three legal ways to become a billionaire.
The first is inheritance. According to last year's Forbes 400 list, About 30 percent of the 400 richest people in the United States She gained her wealth in this way. So, if you think you can't make a billion on your own, just encourage your parents.
It is also possible Marrying into a billionaire family. According to Forbes, there are 735 billionaires in the United States. Most of them are probably married, but this may be a temporary situation. There will always be a few richest people who are single.
Sure though The most common way to become a billionaire in the United States is to make a lot of money. I did it 70 percent of the billionaires from the Forbes 400 list.
How to earn billions of dollars?
Except in rare cases, billions cannot simply be earned or saved. Even people who are amazingly well paid, like former NFL star Tom Brady, They will find it difficult to accumulate this wealth from their profits alone. For example, Brady's new sports broadcast deal will reportedly net him $375 million. Within 10 years. After taxes, that could give him, say, $20 million. annually. If this was Brady's only income and he saved the entire amount, it would take him 50 years to become a billionaire.
Alternatively, if you want to make billions, then You need to acquire assets worth billions.
For most billionaires, these assets take the form of shares in companies. Others are partnership interests (such as hedge funds or private equity funds) or licensing agreements (such as billionaire Michael Jordan's deal with Nike).
Some billionaires earn salaries just like the rest of us, but they usually only represent a small portion of a billionaire's net worth. For example, Warren Buffett receives $100,000. slot. Annually from Berkshire Hathaway. His wealth comes from the Berkshire stock he bought and owns – a share that has increased in value from a $450,000 investment over the past six decades. slot. In its partnership before Berkshire, to approximately $122 billion. currently.
By the way, the above rules apply not only to America. A study on wealth creation in Norway found the same thing: “A very small fraction of people become wealthy through business earnings” (e.g., paychecks).
Here's the key thing to remember:
Create or buy something and then make it worth billions.
The Forbes 400 list is very helpful in this regard. Browse through them and you will see many famous companies that previously had zero valueand since then they have created one or more billionaires: Tesla, Microsoft, Oracle, Google, Facebook, Bloomberg, Berkshire Hathaway, Dell, Airbnb, Nike, Amazon, Walmart, etc.
Most of the richest billionaires on Forbes list I've made a fortune from technology companies. However, as you browse the list, you can see companies from across the economic spectrum: money management, retail, media, food, oil and gas, football, auto parts, real estate, gas stations, insurance, cable TV, restaurants, candy. , pet food, medical equipment, hospitals, communications, sporting goods, supermarkets, construction, mining, cruises, etc. One man even became a billionaire by buying up car dealerships.
Moreover, many of the companies on Forbes' list have achieved billion-dollar fortunes. So you don't necessarily have to create or buy a company yourself. All you have to do is join a company when it's worth little, take a decent-sized stake, and then hold it long enough for it to be worth billions.
Time and focus help. Most self-made billionaires have been in business for a while and still do the same thing over and over again. For example, one car sales entrepreneur started at age 30 with one used car store and is now 72 years old. The factories of Amazon, Google, Microsoft, Oracle and other billionaire factories are decades old. It took Warren Buffett three decades to become a billionaire. It took four more before he became a billionaire.
Luck helps a lot. Mark Cuban recently said that becoming a billionaire is a matter of luck. This is a fresh perspective that you probably won't hear from most billionaires. However, blind luck plays a much larger role in success than most people think. Of course, it's not just luck, Cuban and other billionaires are the ones who created their own companies, started them and then achieved success, something that most people do not achieve.
Living in America helps. According to Forbes magazine, there are 2,640 billionaires in the world. About 735 of them live in the United States, a higher number than any other country or territory.
In short, if you cannot inherit or earn billions through marriage, the most proven and effective formula for becoming a billionaire is the following: Start or buy a small business and make it big.
And by the way, no one is born knowing they can do it – or knowing how to get there. Just because you don't know it yet doesn't mean you can't learn it.
The above text is a translation from American edition of Insidercompletely prepared by the local editorial office.
Translated by: Dorota Salos
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