Becoming a billionaire: what does it really take?

[conquistaDan]

Last week the 2008 Forbes list of worlds richest people was released and it made me wonder. There are now 1,125 in the world. For the first time ever, more than one thousand. And Bill Gates is no longer number one, but in fact number 3 now. And there are only 4 Americans on the top 20. Down from 8

link:
http://www.forbes.com/2008/03/05/richest-people-billionaires-billionaires08-cx_lk_0305billie_land.html


What does it really take to become one? Drive? dedication? inheritance? pure luck? never letting go of a dream? Let me know what you think

[complich8]

Step 1: become a millionaire.
Step 2: repeat step 1 a thousand times.

But seriously, a lot of the billionaires around either founded, co-founded, or invested heavily in companies that grew dramatically. Or they inherited large fortunes (or oil fields) and grew the investment... either way.

[KitKat]

Step 1: become a millionaire.
Step 2: repeat step 1 a thousand times.

No no, you've got it all wrong. It's:
Step 1: Find a billionaire.
Step 2: Marry billionaire.

Hehe, I jest. On the original topic, it doesn't surprise me at all that there are fewer Americans on that list. It's much easier to be a billionaire in a country where you can pay the police to look the other way to what you're doing. Maybe I'm spoiling your idealistic dreams of riches with my cynicism (I know, who would have thought that KitKat would be cynical!) but I'll bet a lot of those people gained their billions at the cost of others. Not a price I'd be willing to pay, personally.

[David75]

Housing, and globally asset's bubbles allowed for "artificial" fortune growth.

Sadly when those bubble burst, the world won't be as peaceful as it is now.

There is like US$516 trillion of assets in bubble... when US gdp is 15 trillion/year and all of the world real estate is 75 trillion.
those 516 trillion were only 100 in the beggining of the millenium.

I do hope the situation does not get like in 1929 or worse.

[Animeniax]

Wow, notice how many Russian billionaires there are and all in their early 40s. Probably mobbed up or criminally negligent? Or did they just get lucky with the new free enterprise Russia?

[Board of Command]

I think it's mostly a mix of inheritance and luck.

[Zachiru-Hirosaki]

First you buy the things that you always want to buy!!
(you have still enough money)

Second you what money to your parents and buy expensive gifts for your other family
(You still have enough money)


Third stop with your job
(you still have ebough money)

Fourth live just like a miljonair

Fifth do what you want

[XanBcoo]

First you buy the things that you always want to buy!!
(you have still enough money)

Second you what money to your parents and buy expensive gifts for your other family
(You still have enough money)


Third stop with your job
(you still have ebough money)

Fourth live just like a miljonair

Fifth do what you want
...I think you misunderstood the question just a little.

[David75]

Wow, notice how many Russian billionaires there are and all in their early 40s. Probably mobbed up or criminally negligent? Or did they just get lucky with the new free enterprise Russia?

Take Yukos, it's former boss now in jail, was very near the gov and benefited from freedom in stealing from the russian people old system...

[Board of Command]

First you buy the things that you always want to buy!!
(you have still enough money)

Second you what money to your parents and buy expensive gifts for your other family
(You still have enough money)


Third stop with your job
(you still have ebough money)

Fourth live just like a miljonair

Fifth do what you want
Money -> Power -> Women

[David75]

You are rich when the interests of your interests allow you to live like a millionaire :D

[Zachiru-Hirosaki]

You are rich when the interests of your interests allow you to live like a millionaire :D

So if i am rich and my interests allow me to live like a miljonair then i am rich. But i am not rich how can my interests allow me to live like a miljonair>Head Pressure

[David75]

So if i am rich and my interests allow me to live like a miljonair then i am rich. But i am not rich how can my interests allow me to live like a miljonair>Head Pressure

Was I lost in translation?
Bank interests, when money produces more money?

[Inazuma]

No no, you've got it all wrong. It's:
Step 1: Find a billionaire.
Step 2: Marry billionaire.

Hehe, I jest. On the original topic, it doesn't surprise me at all that there are fewer Americans on that list. It's much easier to be a billionaire in a country where you can pay the police to look the other way to what you're doing. Maybe I'm spoiling your idealistic dreams of riches with my cynicism (I know, who would have thought that KitKat would be cynical!) but I'll bet a lot of those people gained their billions at the cost of others. Not a price I'd be willing to pay, personally.

Step 3 : Turn Widow

[Board of Command]

Step 3 : Turn Widow
Awake much?

[Psyke]

From another related article on the list of the world's billionaires:

And the magazine revealed Zuckerberg – creator of social networking site Facebook – is the youngest self-made U.S. billionaire to ever appear in the Forbes billionaire rankings.

The website, which he set up to keep in touch with friends he made at Harvard, has made the 23-year-old £755million.


So there you have it. a 23 year old billionaire. :(

[Animeniax]

Yeah, but he's just barely a billionaire.

Besides, like they say, "mo' money, mo' problems".

[conquistaDan]

From another related article on the list of the world's billionaires:

And the magazine revealed Zuckerberg – creator of social networking site Facebook – is the youngest self-made U.S. billionaire to ever appear in the Forbes billionaire rankings.

The website, which he set up to keep in touch with friends he made at Harvard, has made the 23-year-old £755million.


So there you have it. a 23 year old billionaire. :(


Yeah about that. I really hope someone didn't bring that up. Really, really. Because I kind of started this thread just to see what people thought. But also, to gain feedback on things. And, Zuckerberg, is only 8 months older than me. Why does this matter? > conquistaDans biggest passions in life.

On top of the list:
to be in the position Zuckerberg is. He basically stole my biggest goal in life. Seriously, thats my number one goal other than to marry a 10. I can't say steal, because we didn't know each other. Nor was Facebook my idea, but we're in the same industry (online advertising) and we're the same age. Thats the big stinger.

My biggest one is to get the satisfaction of having a copy of the list in your back pocket and high light my name to anyone who doesn't believe me, and then match it up to my ID from my wallet. Then if they do, buy them a steak dinner and a round of expensive wine.

shameless plug:
www.pocketcents.com

let me know what you think. I hope you all like it.

[Zachiru-Hirosaki]

I think that there is a lot of chance that you will be deprived without protection.
Thats why i dont want to be rich because you cant live like other people do. If have protection then you cant go anywhere because its prohibited

[complich8]

I think that there is a lot of chance that you will be deprived without protection.
Thats why i dont want to be rich because you cant live like other people do. If have protection then you cant go anywhere because its prohibited

I'm gonna have to go back to Warren Buffett on that one. The guy drives his own car, goes to his favorite restaurant, and doesn't carry around a team of bodyguards or anything like that. Richest man in the world.

If you're wealthy, but live a modest life, nobody's going to really even know that you're wealthy. But if you act like you're god's gift to humanity because you've managed to accumulate some scratch, people will think you're an arrogant prick and target you just to take you down a couple pegs.

In other words, if you play your cards close to your chest, you'll probably be fine.

[Assertn]

Black swans favor those who don't aim for them.

[conquistaDan]

Black swans favor those who don't aim for them.



I'm sorry. What? Am I the only one who didn't understand that? Are the rich people the black swans or...what?

[XanBcoo]

I'm sorry. What? Am I the only one who didn't understand that? Are the rich people the black swans or...what?
It means that luck finds those who don't try and find luck in their lives. People who fall into unexpected wealth aren't usually those who work hard for it.

That's my understanding, at least. I guess he could be saying "hard work doesn't pay off," but that's just wrong.

[Assertn]

Most world-changing discoveries are made by accident.
Or at least made while aiming for a different world-changing discovery.

Zuckerberg wasn't trying to become rich from his site. He just wanted a tool for his fellow students to use.

[Board of Command]

Insulin wasn't intended for diabetics.

[conquistaDan]

@Assert:
Ok. Brohammer, first of all. Saying that Zuckerbrg wasn't trying to look for wealth from his little online baby, is just wrong. Yes, maybe he didn't intend to become what he is or break records. However, saying that he never ever wanted to it to become a tool for building wealth is just plain ignorant towards the American dream. I will agree with you though (only half) but I will agree that most world changing discoveries are made by accident. However to me, it's god telling you to not be stupid in your day to day job and take this chance to make something of your life, if you're meant to of course. And if you see the signs.


@XanBcoo:
I think it's half and half. Nowhere on the list would be where they are (rare exception) if they didn't have terrific luck in some way. Be it meeting someone in life who you accidentally spill coffee on or something. Or happen to be in the same aisle in a store or something like that. The other half being intellect to see the potential of what you're discovering or trying to develop.

examples:
Ford and the car
the Google guys and trying to just organize the worlds info for easy access
Kodak and inventing a better camera system for the world



Note:
But even those guys knew what they were doing. My main point is, you're either meant to or you aren't. If you're chosen for it, hopefully you'll see it and go for it. If not then good luck in the 9-5 grind. All of those people (besides inheritances) had an extreme very very rare will to not give up and to be smart enough to make something of their lives. Be it world changing/profitable or not.

[complich8]

For those who don't know what black swan events (http://en.wikipedia.org/wiki/Black_swan_theory) are...

Basically, they're very rare breakthroughs that completely break people's expectations and understanding. So like, the success of facebook and the rise of social networking in general. Similarly, Microsoft's rise.

Interestingly, the top of the billionaire list, Warren Buffett, didn't get there via a black swan, but by what's called "value investing"...

[Assertn]

True, however investing in itself can benefit or suffer greatly through black swans.

[conquistaDan]

@complich8
Yeah but did you notice how long it took him? The stakes in Berkshire keeping rising, but value investing takes fucking forever to get your self anywhere decent financially. It could take at least 8-10+ years to become billionaire from it. Thats a long time. Too long. Point being BSE's only make you get rich faster than regular means. And it's been proven that in business most BSE's have been tech rises. Hence Jim Cramers reasoning behind the 4 horseman of tech.

Carlos Slim (#2) also wasn't a BSE event. He bought the Mexican land line system (90% market share). And look where he is.

Plus Buffett wanted to become wealthy. BSE's only make you rich if you want to be. And building a business out of it still means getting (having in most cases) a crap load of business sense, and drive to know what you're doing. Now thats rare.


@Assert

1)
You'd have to have to be really stupid to not benefit from a black swan event. I mean a real capital A grade dumb-ass not to attach yourself to it early on. I mean c'mon, if we knew Gates in the 80's, we'd be getting some capital to ride that train out.

2)
How can they suffer from investing in them? I'd love to see you explain that one. (I'll use reason number 1 as my back up reasoning for this)

3)
If they were discovered on accident. Don't you think that god had something to do with it in one form or another? That accident doesn't just happen to anyone.

However. One could argue that AIM, online chatting and chat rooms could be the prelude to what Facebook and MySpace have brought to the table. So Zuckerberg wasn't bringingthat big of a BSE (black swan event). In fact what he created wasn't useful at all really. We don't need to network online. We needed an operating system, so Gates on the other hand, now that was a BSE of monumental proportions. He wanted to be rich and knew what he was doing.