Millionaires vs BILLIONAIRES

What’s the difference between a millionaire and a billionaire?
$999 million
What’s the simplest way to become a millionaire?
Easy, spend less than you earn and put the rest in the SP 500, a collection of the largest companies in the united states. Over time, you will become a millionaire. Pretty easily actually. For example, if you put $10,000 away every year and earn 8% per year on average, you will be a millionaire in 29 years. It’s not pretty and it’s not quick. But it works!
The reason for this is diversification. You don’t have to do any intellectual work picking stocks or investments. You choose the simplest index fund and let the natural growth of the economy and productivity do the heavy lifting. But this is a lower risk, lower reward strategy. The chances of the 500 biggest companies in America failing over the long run is almost zero, but in return you get meager rewards.
This is how most people become millionaires, slow and steady growth over your working career.
But how do you become a billionaire? It’s not through diversification. And it’s not through saving your income. The mountain is just too big for any sized shovel. No, the only way to amass that amount of money is through extreme concentration. Bill Gates, Jeff Bezos, Warren Buffet, Elon Musk. They became billionaires by holding stock in like 1 company! Well except for Elon because he is actually IronJesus with balls the size of Mars.
The point is diversification preserves wealth, concentation builds.
Ahem if you know what you’re doing.
See, if that one stock you put everything into tanks and falls like a rock, you are totally screwed. That’s the how this whole game works. High risk means high reward baby.
So if you choose to buy a single stock, you need to know the ins and outs of this company. You need to know their product lineup, their cash flow statements, their mission, their CEO’s entire fucking backstory. And you want to buy a company that is innovating like crazy, ahead of the curve and doens’t give a remote fuck about this quarter’s profits. Every dollar should be furiously respent furthering their technological lead, widening the gap between them and the runner up. In the modern economy, it’s a winner takes almost all.
Apple, Google, Amazon, and Microsoft all lept out to an insurmountable lead and their competition is now irrelevant.
So what is the next mega company that will skyrocket over the next 10 years? And will you be along for the ride or be watching on the sidelines?