I'm going to be a Billionaire... Here's my plan.

So there's this awesome tweet by my buddy, Moise Ali. He was the founder of a native deodorant and sold for $100 million after being founded. It was like 18 months old or something like that. Anyway, he made this tweet. It was so good. He says, a generation ago, it took a lifetime of hard work to join the list of billionaires. Now you can do it in five years. There is amazing opportunity in the world. I sat with that one that hit me because I was like, you're right, Moyes. As usual, he's usually, you're right. Like, there's billionaires being minted all the time now. And entrepreneurs, sometimes first time entrepreneurs. Like, what's the name of the girl who started Bumble? Vanna White. What? It wasn't Vanna White. So Vanna White becomes a billionaire, first time entrepreneur. Really? Are you serious? Right? Youngest female billionaire in history. It's so cool. Whitney Wolf. That's what I said, you know? So there's billionaires who are coming up with ideas that get big and they don't, like on paper, make sense. So the fact that first time entrepreneurs can become billionaires, sometimes younger than me, sometimes older than me, it made me ask the question, could I do that? Could I actually become a billionaire? Truth is, quite honestly, I really don't care if I become a billionaire. I really want to just be an entrepreneur that enjoys the experience. And I want to buy the Cleveland Guardians. I have to get used to saying that, that my goal is to buy a Major league baseball team. That's what I want. And I don't care if it's with a billion dollars. I don't care if it's with other people's money. I just want to buy a baseball team and I want to make myself the general manager. If I can't make myself general manager, what am I working towards? Why are we doing YouTube videos? So I don't care if it's a billion dollars or $100 million or whatever, but it made me sit down and think, I wonder if I could actually do this. I actually know. I know I could. Like, I know I have the desire and the talent to be able to do it. So could I do it? And I think. I think I may have figured out the plan. I'm gonna share with you the plan. I don't know if the plan will actually work as clean as I expected it, but I went through this and went, oh, my goodness. Not only is this possible, this is almost, like, inevitable. It's automatic. It's just math to a certain extent. And so my hope for you in this video is that you have the same brain gasm I had, that if you plug in a few factors, well, you can become a billionaire. Let's go.

All right, so as I was mapping this out, I noticed that there were three types of money that I was considering in my brain. Because when we talk about being a billionaire, you think about net worth, right? And net worth is a combination of cash flow, your investments, and then the equity of the business that you own. Jeff Bezos is worth $150 billion because he owns 13% of Amazon, and Amazon stock is where all of his wealth was built. Now, if he were to sell his stock, it would actually crash the value of the stock, which would be really ironic. He can't pull $150 billion out of the market, because if he were to do that, it would actually sink the value of the stock. It would send a signal to the market. Jeff Bezos is selling his stock. There must be something wrong. But his net worth is $150 billion. And that's what we mean by billionaire, right? So cash, the amount of money that you make, your investments, and then the equity of the business that you control. So when most people are talking about becoming a billionaire or even about making money, they're usually thinking about the first one. They're thinking about cash. But cash only exists because we want to trade it, we want to transact it, we want to invest it. We have to do something with it for it to be valuable, right? And as soon as we do that, it's gone. Poof. So why do we optimize for cash? We optimize for cash because it's safety, security, and what we can spend it on, increase our lifestyle, get more status. But that's not how we build wealth. Wealth comes from the other two categories, investments and equity. So I ran some numbers, and I realized that if you put your attention almost exclusively into investments and equity, equity is actually the fastest. But you can become a billionaire in either. Either category. That is how you can compound and get results to become a billionaire. So here's the numbers that I ran today. As of right now, as I'm making this video, my net worth is somewhere around $10 million, which doesn't make me Mark Zuckerberg, but it's more than most people. If all I did with my entire life was spend my life looking for investments that made me 20% per year on average for the rest of my life, how long would it take for my $10 million to be worth a billion dollars.

Play that over in your head. Cue the Vanna White clip. I'd like to solve. Well, you know, if you solve, there's a $7,000 jackpot. Go ahead, Shaggy and Scooby Doo. Whoa.

I'm impressed. Thank you. Wow. Okay, back you run some numbers. It's 26 years, so that would make me 59. 59. I'd be 59. It's a young billionaire. That's awesome. Half my life left to spend a billion dollars, but I wouldn't spend. It would be invested compounding at 20% per year and be making $200 million a year that I could live off of. Who knows what that will be worth in 26 years? But now, 20%. 20% is a good rate of return, right? You got to be a good investor to get 20% per year. That's Warren Bu average over his career. The reason he's so rich is not because of just 20%, but because he's been doing it for 70 some years, right? Maybe longer than that. So what is it? If I just get 12. If I get 12% interest per year, my $10 million at 12% interest for long enough takes 41 years for me to be a billionaire.

Okay, interesting. So now I don't need to be so risky. I'm still gonna become a billionaire by the time I'm 74. Thanks. 74. I'd still get there right before I die. I'd be a billionaire. One thing to note here, though, is that's assuming I never make any more money. It's just the 10 million I have. If I just do that and I did nothing else, I could become a billionaire. Whoa. Okay, so point number one, You've got to have a really bulletproof investing strategy. You have to do not wait until you have a bunch of money in the bank to have your solid investment plan. Because you're gonna be adding to that over and over and over. And don't wait until it's a pile of cash from, like a business sale or from crushing it one year. Do it now. Start compounding it now, because you've got decades for it to compound, become tens of millions of dollars. By the way, I've got a video called how to get rich making $50,000 a year. Should totally watch that video. It's really, really good. And it'll walk you through this. If you're at the beginning of your journey and you're not like, you know, an eight figure entrepreneur now, this is all just the beginning. Of it all, the big piece is that third category of money, which is equity. Equity is the value of your business. It's the thing you are building. Once again, us entrepreneurs, we're often guilty of just building cash flow businesses which can make us money in the short term, but it doesn't set us up to become worth hundreds of millions or billions of dollars. We get there by building equity. I mean, if you think about it, you might have to fact check me on this, but I think that Mark Zuckerberg was a billionaire before Facebook was profitable. The value of your business is not directly correlated to the cash flow that your business has. Here's a good example. I work with a lot of e commerce entrepreneurs where I help them cast a vision for an eight figure exit and I help them build the foundation of a seven figure business and launch profitably. Most of them are bootstrapping. Most of them are playing this game right where they're trying to get to a point where their business makes $2 million a year and they can sell it for $10 million and have an E figure exit, which is amazing. That's so cool, right? And we've got lots of students who have done that. But you could also cast a vision right now for a business that really excites you, that you're really pumped about and say this business is worth $10 million. I'm going to raise 2 million bucks at a $10 million valuation. I've now sold 20%. I'm going to take that 2 million bucks, go build a team, buy lots of inventory.

And have sales and profitability and a justifiable valuation from the launch, from the get go. In fact, I was just pitched on a deal somebody pitched me. They were starting a new food brand, valuing their company at 10 million bucks. No prototype, no revenue, no experience. I passed on the deal, but the point remains. Other people invested in that deal. I've invested in startups that has $17 million valuation from the launch.

So you don't have to correlate your cash flow with the value of your business. But if your brain goes to prioritizing the valuation instead of how much profit it spits off, irony is you'll make more profit.

Then you get an absurd valuation and you can take your cash flow and you take the money that you make from when you sell your business or sell shares in the business, you go plow it into more investments and the snowball moves faster. That is how you could theoretically become a billionaire within five years. Cast a big vision, create good partnerships.

Give A strong valuation, plow all your cash flow into investments. One, two, skip a few. 99 billion. Yes, yes.

Let me tell you how I'm doing this in my business right now. So personally, I've only ever built a $10 million top line business. That's the biggest business I ever built. And I sold that. Business valuation is about 15 million bucks. I didn't get all of it up front. I kept some back. I'm telling you all that because I like to play the role where I work with the entrepreneurs from our community and help them get to, you know, seven figure run rate and then say, great, you've got something here, let's do a real raise. And I come on as an advisor and as an investor and then we go raise money to be able to put money into the business and take it, you know, to an eight figure valuation. And when I get to play that role, I just get to create equity. I just get to like, partner with people and create, like, increase the value of their equity. And if I make that my living helping Bill build eight, nine figure companies, of course I'm going to have enough money to plow into investments that compound into a billion dollars. Like, of course, it's almost like, well, duh, of course you are. So we should all be billionaires. If you watch this video, you should be billionaire. That's why was this video free.

You should pay me by liking this video. That's the game I'm playing right now. And I don't care if it makes me a billion dollars or $2 billion, what's the difference, you know, and all it requires of you to is like punt. Thinking about cash flow, put it all into investments, put your time and your energy into building the equity of your business.

Isn't that fun? And you know what else is cool about that is as soon as I think like that, I go, oh, I have time.

I got time. Like this actually can happen real fast. So I don't need to be in such a rush. I so often find myself in a rush like, I gotta get, I'm not there yet. I'm not there yet. Well, you know what that does? It just keeps me on the hamster wheel pedaling faster and I'm like going nowhere faster. But when I'm like, I got time, the right vision emerges and you make the right relationships and then you, you know, you do the $2 million raise at a $10 million valuation. You don't think anything of it because you believe in the vision. You believe in what you're Doing you believe in who you are, you're the right person for this. It's like we got time, we got so much time and we, you can say inflation, government spending, all this, but the opportunities that we have right now that are emerging, we have no idea how the world is going to conspire to make this easier for us within the next 10 years. None of this was possible 10 years ago. And now we have social media and people want to back e commerce companies and we have influencers we can partner with and capitals everywhere. Like it's easier now. What's it going to be like in 10 years? That's nuts. So if you don't believe that you can do it now, give it a couple years. The world will continue to expand and if you don't believe that you can do it, you won't. But if you do believe that you can do it, there's so many reasons to believe that you can. Isn't that cool? I should really do a call to action at this point in the video because like this, ah. I never like at the end of the video where I'm like. And do this. But like if you're an entrepreneur and you want to play this game, you want to play it big, I'd really like to help. I would. This is so fun because I know when I get the entrepreneur to cast the vision, instead of think about the money, they make the money as the byproduct. So we have this thing, it's called the capitalism incubator. I'd love to have you in there if you watch this whole video and you're pumped about this because when you can think about equity, when you think about the valuation of you're so powerful as an entrepreneur, that's when like all your juice is released into the business. That sounded like a sexual innuendo and I promise you it wasn't.

So if you're an entre. So if you want to work together sometimes that. Sometimes I'll say things like that. But we'll have a lot of fun. You can find out in the description or go to capitalism.com Inc. That was the weirdest call to action ever. Thanks for watching. See you next time we're done. That got weird at the end.