15 Secrets Only Billionaires Know

Table of Contents

1. You don't usually get to one billion dollars and still own 100% of your business

2. Real estate will make you a millionaire, private equity makes you a billionaire

3.Do not use your own money, use someone else's to make yourself rich

4. Everything is a Buy Low Sell High equation, only the scale differs

5.Art is a preferred store of value that can easily be moved around

6. Stocks won't get you to a billion, and neither will luck

7.Every new billionaire turns other millionaires into billionaires

8. Less than five percent of their worth is liquid

9. The real money is made in a crisis

10. They all had and still have experts minimizing risk and increasing returns

11. Very few billionaires are direct-to-consumer, most of the money is in enterprise deals

12. Building relationships is the key to success

13. Constant learning and personal growth are crucial

14. Philanthropy is a responsibility and an opportunity

15. Time is their most valuable asset

1. You don't usually get to one billion dollars and still own 100% of your business

Jeff Bezos owns 12.7 percent of Amazon, Elon Musk owns 13 percent of Tesla, Bernard Arnaut owns 46 percent of LVMH, Warren Buffett owns 16 percent of Berkshire Hathaway, Larry Ellison owns 35 percent of Oracle, and the list goes on. Most millionaires are share protective; they guard their shares like hawks without realizing they're actually keeping themselves from accelerating upwards in a shorter period of time. Owning 15 percent in a multi-billion dollar pie is a lot more financially lucrative than owning 100 percent of your three million dollar business.

2. Real estate will make you a millionaire, private equity makes you a billionaire

The running joke around the ultra-wealthy is that real estate is the "dumb millionaire's game." You can become a millionaire in real estate even if you don't have the brainpower to do anything else. However, ask any millionaire and they'll tell you that almost half (35 to 50 percent) of their net worth is tied up in real estate. On the other hand, ask any billionaire and you'll quickly realize that business interests and private equity make up over 70 percent of their net worth. The most productive way to increase your net worth is by owning a business, blowing it up, and then using the funds to buy pieces of other businesses.

3. Do not use your own money, use someone else's to make yourself rich

You can literally earn your way to one million dollars. There are plenty of jobs out there where, if you put your head down, put in the years, and stack those checks, you'll get to seven figures. Doctors, lawyers, tech engineers, they all earn a ton of money from their salaries. However, you cannot get to one billion dollars the same way. Your financial life unlocks vertically when you realize you can use other people's money to make yourself rich. This is how most billionaires.

4. Everything is a Buy Low Sell High equation, only the scale differs

Billionaires understand the fundamental principle of buying assets when they are undervalued and selling them when the market prices rise. Whether it's stocks, real estate, businesses, or even artwork, they have a keen eye for opportunities and know how to capitalize on them. The key is to identify undervalued assets and have the patience and foresight to wait for the right moment to sell and maximize their returns.

5. Art is a preferred store of value that can easily be moved around

While most people view art as a form of expression or decoration, billionaires see it as an investment. Art has a unique characteristic of holding value over time and often appreciating in price. Billionaires diversify their portfolios by investing in valuable artwork, which not only adds aesthetic appeal to their surroundings but also serves as a store of value that can be easily transported and traded when needed.

6. Stocks won't get you to a billion, and neither will luck

Contrary to popular belief, relying solely on stocks or luck is unlikely to lead to billionaire status. While investing in the stock market can yield substantial returns, it is usually not the primary driver of billionaire wealth. Billionaires understand the importance of strategic investments, entrepreneurial ventures, and creating multiple income streams to accumulate significant wealth. They recognize that building and scaling successful businesses is a more reliable path to billion-dollar fortunes.

7. Every new billionaire turns other millionaires into billionaires

When a new billionaire emerges, it often creates a ripple effect within their network. By leveraging their knowledge, experience, and financial resources, billionaires mentor and invest in promising entrepreneurs and startups, turning them into millionaires or even billionaires. This interconnected web of wealth creation and collaboration helps fuel the growth of the billionaire community while fostering innovation and economic prosperity.

8. Less than five percent of their worth is liquid

Despite their enormous wealth, billionaires typically have a relatively small portion of their net worth in liquid assets. The majority of their wealth is tied up in businesses, real estate, investments, and other illiquid assets. This approach allows them to maximize their potential returns but also requires careful financial planning to ensure sufficient liquidity for their day-to-day needs and strategic opportunities.

9. The real money is made in a crisis

While most people fear economic downturns and crises, billionaires see them as opportunities for wealth creation. During turbulent times, assets are often undervalued, and strategic investors can capitalize on these discounted prices. Billionaires have the financial resources and patience to weather the storm and make shrewd investments when others are hesitant. By taking calculated risks during crises, they position themselves to generate substantial returns when the economy recovers.

10. They all had and still have experts minimizing risk and increasing returns

Billionaires understand the importance of surrounding themselves with a team of experts. These professionals specialize in various fields such as finance, law, taxation, and investment strategies. By delegating certain responsibilities and seeking advice from knowledgeable advisors, billionaires can minimize risks, optimize their investment portfolios, and maximize their overall returns. They recognize that leveraging expertise is crucial for sustained success in the complex world of high finance.

11. Very few billionaires are direct-to-consumer, most of the money is in enterprise deals

While many aspire to build consumer-facing businesses, the majority of billionaire wealth is generated through enterprise deals. These include B2B (business-to-business) ventures, acquisitions, and investments in sectors such as technology, manufacturing, energy, finance, and healthcare. Billionaires understand the immense potential and scalability of enterprise-focused endeavors, allowing them to create significant value and