TSME #034: Billionaires vs. Millionaires

Owning and investing in the stock market requires that you believe that there are companies making money whose profits are going to go higher in the future. Many people think you would want to buy a stock at $7 and wait for it to raise $700 to get rich. However, this rarely happens. Instead, you should buy stock from companies that are already doing well, that are earning billions per quarter and annually. When they are earning high revenues, wall street rewards them with a higher stock price. 

There are more an more billionaires today because there are many companies who are doing extremely well, and their executives and investors are benefiting. 

For example, the company Oracle (ORCL) was founded by a man named Larry Ellison, who is now worth 43 billion dollars. Oracle has seen consistent revenue growth year after year. As the founder, Larry Ellison owns a number of shares of the stock, and it has made him a billionaire. 

When someone is a great innovator and they have the good fortune to be backed by wall street, they are given a certain number of shares of their company before it goes public. For the sake of the example, let’s say that number is 1 million shares priced at $1. When the company goes public, the shares are valued and sold at $40. Now, that innovator is worth $40 million. You can see how someone might become a billionaire, if they were given or purchased 50 million shares of a stock at $10 before it went public. 

Being on the inside before a company goes public can make you a billionaire. However, you can still do well buy purchasing shares of a company after it has gone public and has proven it’s consistent revenue. In The Wealthy Investor program we never purchase IPO’s because want to wait for the company to prove itself and its revenue first. 

Pepsico (PEP)’s CEO is named Indra Nooyi. She is worth 144 million dollars because as a part of her pay package she is issued a certain number of shares of Pepsi. She has not made it to the billionaire realm yet mainly because there is more money to be made in software these days than there is in soft drinks. 

Jeff Bezos who founded Amazon (AMZN) is worth over 50 billion dollars because Amazon’s stock has gone from $200 to $700 in the last five years. The higher the share price, the more his net worth will grow. 

Bill Gates, the founder of Microsoft is worth 76 billion dollars. When Microsoft started there was a lot of running room for software companies. Shareholders who bought into the company after the revenue started rising were rewarded handsomely. 

If you are not in on the ground floor of a company, it probably won’t making you a billionaire. However, investing into companies who are continuously growing their revenues can make you a millionaire. First, you have to get a financial education. Guessing is not investing. Guessing that a company’s stock could go higher is a losing strategy. You must learn to follow revenue. 

If you want a shot at becoming a billionaire, you need to follow an investing plan that has been proven to work. Here's a tip from The Wealthy Investor program: When you start buying stocks, buy in small increments. In The Wealthy Investor Program we call this building a position. If I wanted to buy shares of Oracle, Amazon, Pepsi, or Microsoft, I would start by purchasing 10 share. Then I would wait for the stock to go up five dollars to prove to me that it is worth purchasing more shares. 

For more stock market tips and an investing plan that works, visit TheWealthyInvestor.net today! Click HERE!