THE #1 METHOD FOR YOU AND BILLIONAIRES TO GET RICH – STOCK INVESTING
The four richest men in the U.S. — Jeff Bezos, Elon Musk, Bill Gates, and Mark Zuckerberg have the majority of their net-worth invested in companies they founded. In 2020 their total net-worth INCREASED by $229 billion. Some will ask if that is fair? Regardless of that answer, the better question is, why are you not studying their companies for potential investments? DUH!
These men became billionaires because the companies they founded consistently achieve earnings and sales growth increases due to their firm and competent leadership.
These are the types of companies I have invested in over the past 20+ years, along with MILLIONS of Americans. The majority of my readers own some or all these companies through your 401K and other investments in mutual funds and ETFs.
| Billionaire | WEALTH SOURCE | PERCENTAGE NET-WORTH GREW AS OF NOVEMBER 2020 | COMPANY STOCK APPRECIATION AS OF NOVEMBER 2020 | TOTAL NET-WORTH |
| Jeff Bezos | Founded Amazon | 68% | 77% | $189 Billion |
| Elon Musk | Founded Tesla and Space X | 437% | 650% | $148 Billion |
| Bill Gates | Founded Microsoft | 14% | 39% | $118 Billion |
| Mark Zuckerberg | Founded Facebook | 75% | 35% | $101 Billion |
THE #1 METHOD TO GET RICH FOR BILLIONAIRES AND YOU – INVESTING
HOW INVESTORS BECOME WEALTHY!
As an investor, you can invest and make money in multiple industries, including the above-listed companies, and many more. You MUST LEARN how to pick the right companies to invest. Investing in good companies can be a difficult skill to master as numerous high-flying companies {Enron, Radio Shack, Sears, K-Mart, Every US Airline except for Southwest, etc.} have declared bankruptcy.
Warren Buffett started investing in his twenties and devoted his life to picking the best stock investments. Mr. Buffett’s net-worth ~$86 Billion. His holding company, Berkshire Hathaway, owns significant stakes in a diverse set of companies, including Apple, Bank of America, Coca-Cola, American Express, and Kraft Heinz. Apple is Berkshire Hathaway’s largest portfolio, holding comprising 49.1% of the portfolio due to phenomenal growth in stock price.
THE BEST S&P 500 – 30 STOCKS
The below chart shows you the thirty best-performing stocks’ returns in the S&P over the past 30 years. The last column shows what an investment of $10,000 in this company is worth today. Amazon’s stock went public May 15, 1997 (~23 years), and a $10,000 investment as of November 2020 is worth $21,302,249.00. So yes, Jeff Bezos is the richest man in the world for a reason!
This is the power of STUDYING billionaires’ companies and investing in GOOD companies.
CHOOSING THE BEST STOCKS FOR YOUR MONEY
- Talented Management Teams: Over time, good management increases sales, earnings, profit margins, and stock prices.
- Businesses with strong and growing Free Cash Flows: Free Cash Flow is the money remaining after reinvesting in the business.
- Proven track record of capital allocation: Meaning the company has invested its money wisely over the long term, whether in new projects, mergers, or acquisitions. The capital allocation also includes returning capital to shareholders in the form of stock buybacks or dividends.
- High-quality companies: In particular, those with a durable competitive advantage—”What Buffett called a moat—a buffer around a company’s core business that makes attack difficult for the competition.”
- A Network Effect: People shop at Amazon because tens of millions of items are for sale, typically at reasonable or fair prices. Plus, the millions of reviews found on Amazon products. My wife (admittedly the smarter) taught me to read the reviews and avoid the wrong products. I joined Facebook primarily because so many of my family and friends are on Facebook. To further explain, “Morningstar believes a network effect occurs when the value of a company’s service increases, as more people use the service.”
- Cost advantage: The concept of a cost advantage can easily apply to many industries. Both Wal-Mart and Home Depot destroyed their smaller competitors because they could not match both companies’ larger volume discounts. There is, however, a cost to the consumer. When the competition is eliminated, they have the opportunity to raise prices without worrying about losing the bulk of their customers. What stops them? Amazon!
- Switching cost: I am typing this blog on my Desktop Apple Mac, with an Apple iPhone in my pocket. An apple laptop sits on a couch downstairs while an Apple iPad lays on a bed upstairs. Do you get where I am going with this? As a consumer, it is much less effort and cost to remain with Apple. The same concept applies to many other products.
THE DIFFERENCE RICH VS POOR
Poor people say:
- I don’t have the time!
- I don’t have the resource/money!
- I don’t have the competency.
Rich people BUILD all three! The choice is yours.
CONCLUSION
Never invest money in stocks you cannot afford to lose your HARD EARNED MONEY!. If you cannot afford the loss, invest in safer assets. As I have repeatedly said, if you do not have the time and investment knowledge/competency, consider an S&P 500 ETF or hire a fiduciary financial manager.
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an N.C. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, real estate, and happy to share my finance and investment lessons learned with you.
However, I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. For individual financial advice, please seek your licensed CPA or fiduciary financial advisors.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
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