Codie SanchezFounder @ Contrarian Thinking

The Industry That Makes The Most Billionaires... #shorts

28 Nov 2022 · 1 min

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Codie Sanchez argues that private equity investors have produced more billionaires than any other category on the Forbes 100, while real estate has produced the most millionaires but the fewest billionaires. She attributes this to democratization and commoditization of real estate (wider retail access leading to price compression), which reduces the ability to create outsized wealth compared with off-market private equity deals.

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You were to look at the Forbes 100 list. So the richest people in the world, the one category that's created more multi, multi, multi billionaires than any other, is private equity investor. They buy deals off market. Why? Because when democratization happens and commoditization happens, meaning everybody gets access to it, prices compress. Think about real estate. Today, real estate has created 90% of all millionaires in the US but is the single least common way that people came on the Forbes 100 list. So it's created the fewest amount of billionaires and the most amount of millionaires. Why is that? It's because real estate is continuing to have price compression. It's now so easy to invest, at least in retail, real estate, multifamily single family, that more and more people are doing it, which is creating a much harder opportunity to make real wealth on.