Jasmine
VIP Contributor
When you check Forbes list of 100 billionaires, you will see that there is one category that creates more billionaires than others. Do you know what that is?
The category that makes most billionaires is “Private Equity Investor”
How do private equity investors make such a big amount?
They buy deals off market. Elon Musk offering to buy Twitter is one such example. Twitter is a publicly traded company, you are allowed to invest maximum 15 percent on the company, but Musk is trying to make deals off market so that he can buy all Twitter shares.
When democratization and commoditization happen, everyone gets access to it and the prices compress.
A good example comes from real estate. Real estate creates most millionaires, but is rarely creates billionaires. That’s due to the price compression. It is easy to invest in real estate and more and more people are investing in real estate, which has created much harder opportunity to make real wealth on it.
The category that makes most billionaires is “Private Equity Investor”
How do private equity investors make such a big amount?
They buy deals off market. Elon Musk offering to buy Twitter is one such example. Twitter is a publicly traded company, you are allowed to invest maximum 15 percent on the company, but Musk is trying to make deals off market so that he can buy all Twitter shares.
When democratization and commoditization happen, everyone gets access to it and the prices compress.
A good example comes from real estate. Real estate creates most millionaires, but is rarely creates billionaires. That’s due to the price compression. It is easy to invest in real estate and more and more people are investing in real estate, which has created much harder opportunity to make real wealth on it.
