Found out how to become a billionaire

Premise:

Inverse of money = value. Nobody gives you a $ unless you give them something they want that is either:

A. Entertaining

B. Useful 

Money is a shorthand. What matters is double coincidence of wants. 

To capture a huge chunk of money in one's life time to expand absolute income through normal means such as a job is impossible.

A. Productivity is tied to extent of working hour or moment

B. Highest professions such as lawyer or medical professions are capped to millions max which is a deviation from billions.

So what is the path?

To speed up results one requires:

A. Leverage

B. The ability to compound absolute sums of cash into higher sums of cash

C. Master liquidity to liquidity cycle (cash to cash)

D. Master return on capital invested

Where is the lion's share of cash today ?

A. In a company's corporate treasury

Why do we care about owning a business or a company

A. Factors of production such as land, factory, people, marketing sales channels are stored in a company. 

B. The modern day corporation is the temple of wealth. Previously one who owned land was rich but land doesn't not equate to liquidity.

So what is the game plan to start a company ? No. 

Most people will fail and that is fine and the expected result.

To convert an idea to a saleable product after having it pass proof-of-concept is highly unlikely. Biotech companies go through phases of testing and even then many companies face litigation when selling a defunct product.

Not all hope is lost. If you're a talentless hack, have no Elon Musk or Larry Page abilities to invent or make a hot new product whattya do ?

You can align with sociology to get rich:

A. Factors of production are inanimate and therefore companies which control factors of production such as factories land property patents liquidable things such as products services do not care who the owner is.

B. So ultimately, you can position yourself for barter and trade and amassing factors of production by actively investing it it or spending money to buy it up.

How do you buy factors of production ?

A. The biggest temples of wealth today are listed on stock exchanges. A corporation with management, board of directors, management team and business units and factories or services . They are readily producing income.

So what is the gap ? What is the shortest line from point A to K. The line from A to K.

  1. Buy a bank in an offshore island

  2. Use it to wire kickbacks to bankers

  3. Get massive leverage in the form of loans for acquisitions of companies already ready to run (launch an acquisition strategy)

  4. Hire McKinsey and BCG to layoff workers and trim the workforce. 

  5. Use art as a kickback tool with directors in other companies to sell off divisions of your firm or excess land or property plant equipment

  6. Raid the corporate treasury and pay yourself dividends

  7. Hire investment bankers to do another acquisition of another firm

  1. Sit off dividends and free cash flow, let management that came with acquisition handle day to day and put a chunk of earnings from dividends in family trust.

Rinse repeat over a lifetime and you will have a huge wad of cash at end.

Also

You're welcome

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Comments (18)

Nov 1, 2021 - 3:11pm

Doubtful.

How much $$$ do you need to enact this strategy?

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Nov 1, 2021 - 3:13pm

Most small cap public companies are in the millions so to get the basic structure and positioning right you need

to already have an operating holding company with an actual operation or atleast an acquired operation.

Buffett started with $6 million.

You can make your initial millions iin commercial real estate or whatever then leverage your way up. I'd say it's entirely possible but to get into that zone and position yourself right you should first be a millionaire and dedicate your life to this plan.

Some start with a drug store, make it a chain of drug stores, sell it off, and then get into this game.

Nov 1, 2021 - 4:46pm

Hello,

Question for you papertiger - when you say Commercial Real Estate, how would one leverage that if you are at a net negative in the initial process of say, purchasing an apartment building (even a duplex), when you barely get any positive income gains from those units?  

I am trying to piece together what you stated in this comment.  Can you please clarify? 

Funniest
  • Intern in RE - Comm
Nov 1, 2021 - 3:13pm

I personally use buyoffsharebanks.com, but I would love to hear other websites yall use

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Nov 1, 2021 - 5:29pm

You need to pay McKinsey and BCG to lay off workers and trim the workforce? Can't you just do that yourself?

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Nov 1, 2021 - 5:42pm

Also, if you've found out how to become a billionaire, why aren't you one yet and how long will it take you?

As T. Boone Pickens says, "the first billion is the hardest."

"If you always put limits on everything you do, physical or anything else, it will spread into your work and into your life. There are no limits. There are only plateaus, and you must not stay there, you must go beyond them." - Bruce Lee

Nov 2, 2021 - 1:44pm

Isaiah_53_5 💎🙌💎🙌💎

Also, if you've found out how to become a billionaire, why aren't you one yet and how long will it take you?

As T. Boone Pickens says, "the first billion is the hardest."

Thank you! We only believe in people who have actually accomplished what they preach, the rest is just cheese.

SafariJoe, wins again!
  • Associate 1 in IB - Restr
Nov 1, 2021 - 5:52pm

"Get massive leverage in the form of loans for acquisitions of companies already ready to run (launch an acquisition strategy)"

Ah, yes the classic "go get a personal loan and buy an entire cash flow positive corporation with it" plan 

I think you make a lot of interesting points, but most people will need significant levels of personal income/assets to collateralize a loan needed to buy controlling interest in a decent sized company. In fact, most prime brokers won't even give margin on control stock positions. 

  • Prospect in IB-M&A
Nov 3, 2021 - 8:19am

Or you could just put $8000 into SHIB, a dog themed shitcoin with no utility and turn it into $5.4B

Nov 3, 2021 - 8:54am

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