Most Common Way To Become a Self-Made Liquid Billionaire?

Wicked Ice said:
Google is in Internet technology, not Internet marketing.
Click to expand...

Sure, but all of their revenue comes from advertising or it did before launching physical products and operating systems. They're not marketers per se, but their billions have come directly from the Internet marketing industry. I guess I should have said they are the closest thing to IM billionaires. . .
 


LOL @ this.

cassius said:
Sure, but all of their revenue comes from advertising or it did before launching physical products and operating systems. They're not marketers per se, but their billions have come directly from the Internet marketing industry. I guess I should have said they are the closest thing to IM billionaires. . .
Click to expand...
 
onlinehustla said:
Technology... nothing else scales the same way, has a low barrier to entry, etc. I can name several emerging industries where someone is going to create a startup that will dominate the industry (mix of luck/skill) and will go from regular joe to billionaire in the next 10 years:
- Mobile payments
- Medical tourism
- 3d printing
- SoLoMo
Click to expand...

You don't know what you're talking about but yea, technology is the future.


I come from a family that's pretty connected. I know atleast 4 real - life billionaires and none of them made money from technology. (yea, know them personally)
These are real people who've made a real billion.


From people I really know and what I know about their businesses, they hit their jackpots in the following fields and then just went on buying off more companies or investing in other businesses.
- Pharmaceuticals - I don't think they have a website
- Commodity Exchange (well, he is from India but makes his money from you suckers in the US and middle east)
- Alcohol manufacturing
- Luxury home interiors

You go to their websites and they're absolutely crap! These are people who can shit our a $250,000 S class and gift it off (yea, that's what it costs in India). But their websites still look like shit!
Here's an example: Swati Interior
There's a very large gap between the tech generation and the old school generation.

We can't make any money without technology and they think technology can make them no money.

There are a lot of other fields where a tonne of easy money is made, but technology is just super-hyped because of Mark zuckerburg and Bill gates and the likes. There are unsung billionaires in every industry. They just don't like attracting the lime light.

We overestimate technology. Very few people really make billions as compared to what people make in the old-school non-tech related businesses.

This might be because technology is still in its infancy.

I don't think the Directi dude has made it to the 1billion mark yet. (Not sure..)

A billion is a lot lot of money.
 
NetMillion said:
By self-made I mean the person did not marry into the money, inherit the money, or receive any business from their dad. By liquid I mean the person is able to have $1b in their bank account cash if they wanted (before taxes).
Click to expand...


Quite a few billionaires wouldnt be able to have 1 bill liquid, because they would lose control over their companies, case in point- Larry Ellison of Oracle.
 
DumDum said:
You don't know what you're talking about
Click to expand...

wee-bey-oh-shit.gif
 
1. Start a company and 1) go public and sell off your shares, or 2) sell company to a bigger company for $1b or more
Yes, this is the more common these days especially with tech/ internet startups

2. Start a hedge fund (trade stocks with others money and take percentage)
There are too many and almost every banker/finance guy or gal who has gained enough experience/contacts in blue chip Wall Street firm wants to start hedge fund. Chances of becoming billionaire this way is slim contrary to all the happy success stories you read. For every 1 successful guy/girl there are probably another 99 lying on streets or bankrupt

3. Start a private equity firm (buy whole companies with others money and resell)
Similar to 2.
4. Build/buy big real estate for cheap, and resell or lease out.
You need to buy and sell tonnes of properties to hit $1 billiion profits. Maybe faster that you start a real estate property firm or REIt and buy those cheap real estate in US, lease them out and then wait for real estate boom in US to come. The catch is you need big big capital like millions to start up. Let us say you expect property prices to double 5 years from now which means you need $1 billion worth of real estate to make $1 billion profit (assuming your rentals enough to cover your interest cost/maintenance etc). If gear up and get bank financing (which isn't easy to get) you have to fork out 20% of 200 million capital. You will have to beg borrow or steal or could of course look for a rich backer to invest in your idea :)
 
This is just stupid. It's like me asking my cleaning lady how to fix a car.

Or it's like me taking gardening advice from a plumber.
 
NetMillion said:
1. Start a company and 1) go public and sell off your shares, or 2) sell company to a bigger company for $1b or more
2. Start a hedge fund (trade stocks with others money and take percentage)
3. Start a private equity firm (buy whole companies with others money and resell)
4. Build/buy big real estate for cheap, and resell or lease out.
Click to expand...

If you consider all those liquid, then what's not liquid?
 
NetMillion said:
2) this might seem like a silly question, but does anyone actually become a liquid billionaire from the PROFITS produced by their company's business model? (besides #2, #3, and #4) Or is it always from selling out to a bigger company or going public? My guess would be "yes" but you don't hear about this as much. Someone is usually coined a "billionaire" because they would be if they sold the company.
Click to expand...

You probably only have the forbes billionaires in mind.
How would Forbes know if I save a billion in my private bank account? Would I want them to know?

Other than that, there are probably a lot of billionaires that you just can't know about. Think about drug lords and similar illegal businesses.

Also, look at the wealth of monarchs (for example in the middle east).
Forbes doesn't recognize their wealth, so they are not listed.
But they are probably by far richer than the top 10 billionaires.

Edit: the forbes list is probably flawed or at least their criteria doesn't focus on the criteria you are looking for
 
ameyer said:
If you consider all those liquid, then what's not liquid?
Click to expand...


when you start a company and sell off the shares, you get cash, you can spend that money.

when you start a company and sell it to a bigger company, they give you cash, you can spend that money.

when you start a hedge fund and take 20% of the earnings, it's cash, you can spend it.

same with the rest I listed.

Not liquid or "illiquid" as someone else called it would be companies/stocks/assets that you can't sell or liquidate for whatever reason.


Another thing is, I'm not asking wickedfire "how to become" a billionaire. I'm fully aware that most people on this website are broke as hell. Please refer to the 3 original questions in my post.
 
Carl Icahn and Warren Buffett have proven that the M&A side of Private equity is way to billionaires path without making an invention, or starting a company from brick and mortar... That is.. If you are buying companies etc. Even though there are other ways, these ways if done with common sense (and finding the value and gems in undervalued companies), can really self-propel you into billionaire riches.
The Hedge fund path is a difficult path. You have to be very well connected in this day of age, in the 50's and 60s it was much easier, more like an investment partnership. But you still had to be very well connected and close with other wealthy individuals, Hince Buffett's father was a congressman. It was luck, more less, and skill. If you guys know rich people to hob nob. And have a strategy like Mohnish Pabrai. (Who was a techie turned HF manager, amassed over 500mm net worth), then youre good to go.

But other than that the Hedge fund path is very tough. I've been hearing the best way to do this is Get an MBA at a top school, then get into a bank, get the clientele, and then go on your own. Tough path. So IMHO it's about who you know
 
It depends whether your goal is purely money, or power too (which brings with it more money, to a massive extent if you do it right). For power, you need to be in an industry which people truly need, not just want. A good sample of these niches:
List of Bilderberg participants - Wikipedia, the free encyclopedia

So, to briefly name a few, fuel, electricity, heat, transport, banking, communications, food.

EDIT: fuck, should really look at the second page before posting.
 
A combination of the following:

-Tech product inventions/royalties
-Lots and lots of angel/VC investing, collecting dividends.
-Limit yourself to a modest salary $60k-$100k~ to survive on and reinvest everything else into a diverse/high risk portfolio of companies.
-The earlier you get into a company the better, naturally.
-Investing in the development of products that have low overhead and large effect (something that a very broad demographic might be interested in buying).

I've been puzzling over this myself, but I think the best way is to continuously be building really innovative products that everyone wants. Like Facebook. Like Google. Like Salesforce. Whatever the next big thing will be. It ain't easy, that's for sure. The key is cash flow, though, so you have to be getting lots and lots of dividends.
 
You must log in or register to reply here.
Top Bottom