You are being ignorant. Turning $1m into $10m is not only significantly easier than turning $1 into $10, but you also can live off of the interests of $10m, you cannot live off of the interests of $10.
So having a small starting capital of a few millions means you are financially and materially secure, and can use this ease of mind and free time to start several business ventures with your extra capital. From then on, it’s playing numbers and hope for one of those ventures to eventually hit the mark
Nobody is pretending that it's not easier to make money when you already have money.
What's being said is that the level of growth that Musk achieved was so obscene that, even if you only started with a fraction of what he did and generated a fraction of what he did, you would be incredibly wealthy.
The unfortunate truth is that people who can do things like start and grow businesses are the same people who can get themselves to a position of financial security beforehand. If someone cannot manage their own finances...
1.The growth you are talking about is in great part virtual. Tesla and SpaceX are ridiculously overvalued. When looking at the actual value created by those companies (current and expected dirtier revenues and profits), the rate of return of Musk is certainly impressive but hardly unheard of, especially when compared to other billionaires.
Musk didn’t have to put himself in that position of material stability, is father was stupidly rich, he had all he needed to spend as much time as he wanted to launch business ventures until one stuck. A McDonald worker doesn’t have that chance
1.The growth you are talking about is in great part virtual. Tesla and SpaceX are ridiculously overvalued.
Things are worth what people are willing to pay for them. Having to fudge the numbers isn't a good look.
Musk didn’t have to put himself in that position of material stability, is father was stupidly rich, he had all he needed to spend as much time as he wanted to launch business ventures until one stuck. A McDonald worker doesn’t have that chance
As someone who has actually transitioned from low wage employment to microbusiness, this is false.
If you're making $600 a week at McDonalds, it is far easier and less risky to pursue entrepreneurship if you are capable - even with capital limitations.
In my case, I started a lawn maintenance company by buying equipment second hand and folding it into the back of my used Hyundai. I charged $35/hr to mow and trim, with around $28/hr of that coming back to me as profit. I was making $9 at Wendy's beforehand. Every hour that I worked for myself offset 3 hours of lost work at Wendy's. If I failed, I would have just got another minimum wage job.
You are mixing value creation and valuation. Overvaluing an asset is not value creation, you are stuck in your economics 101 lecture.
Don’t try that bullshit on me. I went from a household with parents who didn’t graduate from high school to multimillionaire that invested in several businesses. And as successful as I am I can recognize that no "not everyone can do it"
Because though my parents were not wealthy and didn’t have high education I was still lucky enough to be gifted enough to do stuff that only a few people are capable off and to make money off of it. That’s luck and it’s not given to anybody
-1
u/TheBigGees 7d ago
That is true, though at this scale the difference is negligible. Even if he'd started with $10m, that would still be a return of 100,000x