The easy way to become a BILLIONAIRE | Start with $100 dollars

A Billion dollars with a capital B. Every few days there’s a new Billionaire. We have the super-rich like Elon Musk and Jeff Bezos. There are the young ones, like Kylie Jenner and Mark Zuckerberg. Then there are people like Warren Buffett who used the power of TIME to make their millions, that guy is old.

The methods of Warren Buffett will be my focus for this article, and I want to explain why it may not be as difficult as most assume to re-create this form of success, or at least make it halfway there. 500 Million still sounds nice.

So, to become a BILLIONAIRE all it takes is to have $100 and double it 24 times. I’m going to write this out so you can see exactly what I’m saying.

$100, $200 (first double), $400, $800, $1,600, $3,200, $6,400, $12,800, $25,600, $51,200, $102,400, $204,800, $409,600, $819,200, $1,638,400, $3,276,800, $6,553,600, $13,107,200, $26,214,400, $52,428,800, $104,857,600, $209,715,200, $419,430,400, $838,860,800, $1,677,721,600.

Now, I’m sure you didn’t read all those numbers but trust me, doubling $100 24 times makes you a billionaire (actually a few hundred million over a billionaire). The amazing thing about this is it’s a lot less intimidating when it’s broken down into 24 steps. If you start out with more than $100, like $3,000 you instantly skip 5 doubles, meaning you only need to double your money 19 times.

What does this mean for you? Well, let me give some examples of what would have doubled your money one, or multiple times.

First, investing in the S&P 500 in March 2020 today this would have just about doubled your money and the S&P is considered a pretty save investment. This is not something you can expect every year. Historically the S&P doubles around every 7ish years so to double 24 times, you would need your money invested for about 168 years. That’s a long time.

Photo by Pixabay on Pexels.com

Next, we have Tesla, of course this is a stock that is considered by some to be super risky but just bear with me. ONE YEAR AGO, the stock was around $100 per share (if you factor in the stock split). Today, it is about $690. That means that you would have doubled your money not once, not twice, but just under three times (about 2.7 times). As we know this was one of the fastest growing stocks of the year and is not likely to occur again any time soon. If that rate did continue you would be a BILLIONAIRE in just under 9 years. WOW! Billionaire in 9 years, starting with $100. Now, I can almost guarantee that will not happen, but it is important to note that it DID happen least year.

Another stock that is not considered as risky is Apple stock. Two years ago, in April 2019 the stock was about $50 dollars, so it has doubled about 1.25 times now being at $125 dollars per share. At this rate you become a Billionaire in 2 decades, starting with $100.

Just to show how many stocks have doubled in the last few years I will list some. Facebook about one time in the last year. Netflix about 2.5 times in the last 5 years. AMD doubled 4 times in the last 4 years and 6 is the last 5 years. Carvana has doubled twice in 2 years. Lastly Etsy has doubled twice since 2019 as well.

The point of me listing these stocks is not to show that you missed out or that these are the only opportunities. These are just a few stocks of MANY that have blown up in the last few years or few decades. I’m trying to show that if you do good research and decide to pick stocks yourself after much due diligence, instead of doubling your money every 7-8 years with less risky options. It may be possible do double your portfolio every 3 or 4 years.

Photo by MayoFi on Pexels.com

I’m not recommending any of these stocks, or how to invest your money, it’s just important to note that people do double their money much quicker than the S&P doubles. You don’t become super wealthy by investing incredibly broad and making a few percent a year on your investments. You become ultra-wealthy by taking some additional risk. I’ve been told that Warren Buffett realized this when he was a young man and decided to take the risk and purchase about 10 stocks that he did extreme amounts of research on. He understood the product and the market for those companies, and held them for decades. Because he held these companies and never sold, he was able to make a lot of money over the decades making him one of the richest men in the world.

Picking 5, 10, 20 or more stocks for a portfolio and holding them for life COULD be the best route if you plan to become worth many millions or BILLIONS of dollars.

I want to state once again that this is not investment advice. This is just showing one option for investing and this is how I personally choose to invest some of my money. I pick markets that I know well, then buy those companies and hold them through the ups and downs, buying more and more when the dips happen because I believe in the research I have done and the understanding I have of that market.

Overall, investing in a few companies for a very long period of time can be a much better strategy than the common IRA, 401k, or Index Fund strategy. Maybe even mix between them if you don’t want to risk an entire portfolio on a few stocks.

Remember that selling stocks means paying taxes, something the rich avoid. This was a major factor on why Warren Buffett was one of the richest men and not day traders.

As of today, you can also become a BILLIONAIRE by exchanging $504 USD for a BILLION Venezuelan Bolivar, or inventing the next Facebook, Amazon, Apple or Google.

Published by Christal

I’m here to share the knowledge and tips I have so you can see how I make passive income, save for an early retirement, and enjoy life outside the cubicle.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: