15 Secrets Only Billionaires Know

Summary

This video script from alux.com reveals the strategies and mindsets of billionaires, highlighting that most do not own 100% of their businesses, emphasizing the importance of using other people's money to scale and the significance of private equity. It also touches on the role of art as a store of value, the power of buy low-sell high in various forms, and the importance of decision-making and persuasion skills. The script dispels myths about wealth accumulation through stocks and luck, and it underscores the reality of wealth creation during crises and the advantage of enterprise deals over consumer ones.

Takeaways

• 😀 Wealth concentration: Most billionaires do not own 100% of their businesses, instead, they own a significant but smaller percentage of a much larger, more valuable business.
• 🏘️ Real estate vs. Private Equity: While real estate can make you a millionaire, private equity investments are often the path to billionaire status, as they represent a larger share of a billionaire's net worth.
• 💼 Leveraging other people's money: Billionaires often use other people's money to grow their wealth, starting with small investments and scaling up through various funding rounds.
• 📈 Buy low, sell high strategy: The core principle of wealth accumulation for billionaires is buying low and selling high, applied across various scales and industries.
• 🎨 Art as a store of value: Art is a favored asset class for the ultra-wealthy due to its portability, potential for high returns, and ability to be easily moved or stored.
• 📊 Stocks and luck limitations: Stocks may not be sufficient for reaching billionaire status, and luck can help achieve millionaire status but not necessarily billionaire.
• 🤝 Network and influence: New billionaires often bring others along with them, turning early investors into millionaires through their success.
• 💸 Liquidity misconception: Most of a billionaire's wealth is not liquid; they often use assets as collateral for loans rather than selling their holdings.
• 🌐 Crisis as opportunity: Billionaires view economic crises as opportunities to acquire assets at discounted prices, setting themselves up for future growth.
• 🧐 Expertise and mentorship: Billionaires rely on a network of experts to minimize risk and maximize returns, often employing executive coaches to maintain focus and clarity.
• 💼 Enterprise over consumer: Most of the wealth in business comes from enterprise deals rather than direct-to-consumer sales, emphasizing the importance of B2B relationships.
• 🚀 Starting advantage: Many billionaires had a head start due to their family's wealth, education, and connections, which provided them with the means to take risks.
• 🛠️ Exploitation in supply chains: The wealth of industry tycoons is sometimes built on the exploitation of cheap labor, particularly in the extraction of resources like cobalt.
• 🤑 Obsession with wealth: A common trait among billionaires is an intense focus on wealth and success, often at the expense of other aspects of life.
• 🧠 Decision-making and persuasion: The most valuable skills for high-level success are the abilities to make sound decisions and to persuade others effectively.

Q & A

How much of their businesses do billionaires typically own, and why is this significant?

Billionaires typically own a smaller percentage of their businesses, often under 50%. For example, Jeff Bezos owns 12.7% of Amazon, and Elon Musk owns 13% of Tesla. This is significant because owning a smaller percentage of a large, multi-billion dollar business is often more lucrative than owning 100% of a smaller business.

What is the difference between how millionaires and billionaires invest in real estate and private equity?

Millionaires often invest heavily in real estate, with 35-50% of their net worth tied up in it. In contrast, billionaires primarily invest in business interests and private equity, which make up over 70% of their net worth.

Why do billionaires prefer using other people's money to grow their wealth?

Billionaires use other people's money to leverage and scale their businesses. By raising funds from investors at various stages of growth, they can accelerate their business expansion without using their own money, which increases the company's valuation and their own wealth.

What is the fundamental principle behind the 'Buy Low, Sell High' strategy used by billionaires?

The 'Buy Low, Sell High' strategy involves purchasing assets or businesses at a low cost and selling them at a higher price. Billionaires optimize their profits by focusing on markup and scale, conducting many transactions with a small margin (like Amazon) or fewer transactions with a high margin (like Tesla).

How do billionaires use art as a store of value?

Billionaires invest in blue-chip art as a way to store value that can easily be moved. Art is less susceptible to inflation compared to cash and can be used as collateral or leased to museums, providing both appreciation in value and liquidity.

Why won't stocks alone make someone a billionaire?

Stocks require a large time horizon and substantial initial investment. While they can build significant wealth over time, they lack the rapid scaling potential that other investment vehicles, like private equity or business ownership, provide.

How do new billionaires contribute to creating other millionaires or billionaires?

New billionaires often bring along early investors who believed in their vision. For instance, Peter Thiel's initial $500,000 investment in Facebook turned into $628 million after its IPO. Similarly, early investments in promising startups can yield substantial returns for investors.

What is the liquidity situation of most billionaires' wealth?

Most billionaires have less than 5% of their wealth in liquid assets. Instead of selling their assets when they need cash, they use their holdings as collateral for low-interest loans, avoiding the need to sell and incur taxes on their wealth.

Why do billionaires see crises as opportunities?

Billionaires view crises as opportunities to buy valuable assets at discounted prices. They focus on long-term strategic moves, making a few significant investments per decade that yield substantial returns during economic downturns.

What role do experts play in the success of billionaires?

Billionaires rely on experts to minimize risks and increase returns. They hire top accounting, legal, and managerial talent to handle various aspects of their business, allowing them to focus on high-level strategic decisions and exponential growth.

Outlines

00:00

💰 Wealth Insights from Billionaires

This paragraph introduces the unique perspective billionaires have on life and business, highlighting 15 secrets known only to them. It emphasizes that most billionaires do not own 100% of their businesses, using Jeff Bezos, Elon Musk, Bernard Arnault, Warren Buffett, and Larry Ellison as examples. It also points out that real estate is considered a 'dumb millionaire's game' compared to private equity, which is the primary source of wealth for billionaires. The paragraph concludes with a step-by-step explanation of how billionaires leverage other people's money to scale their businesses and increase their net worth.

05:02

🏆 The Billionaire Blueprint: Scaling and Investing

This section delves into the strategies billionaires use to scale their wealth, focusing on the 'buy low, sell high' principle applied across various industries. It mentions that billionaires trade in commodities, shipping, and attention, optimizing their markup and scale to increase transactions. The paragraph also discusses the importance of art as a store of value, the role of Masterworks in democratizing art investment, and the limitations of relying on stocks and luck for wealth accumulation.

10:05

🤝 Leveraging Networks and Capitalizing on Crises

The paragraph discusses the importance of using other people's money to grow wealth, as illustrated by the journey of a startup to an IPO. It also highlights how new billionaires can turn millionaires into billionaires by involving them early in their ventures. Furthermore, it points out that less than 5% of a billionaire's wealth is liquid, and they often use their assets as collateral for loans instead of selling them. The paragraph concludes with the idea that crises present opportunities for billionaires to invest and grow their wealth.

15:05

🛡️ Minimizing Risk with Expertise and Strategic Moves

This section underscores the role of experts in a billionaire's life, from accounting to legal firms, ensuring that financial risks and liabilities are mitigated. It also discusses the importance of having executive coaches to maintain focus and clarity of thought. The paragraph mentions the ALUX app, which offers access to industry experts at a fraction of the cost, and how it has helped users achieve their goals. It also touches on the significance of enterprise deals over direct-to-consumer sales for generating substantial income.

20:07

🚀 Context and Connections: The Path to Billionaire Status

The paragraph explores the backgrounds of many billionaires, noting that they often had advantageous contexts such as rich parents, access to education, and safety nets. It challenges the notion of 'self-made' billionaires and points out that their achievements are built upon a foundation of privilege and opportunity. The section also addresses the controversial aspect of industry tycoons getting wealthy through the exploitation of cheap labor in industries like technology and fashion.

25:07

💼 The Drive for Wealth and the Skills of Billionaires

This section delves into the mindset of billionaires, suggesting that they are often sociopathically obsessed with money and success, willing to make significant personal sacrifices to achieve it. It also identifies decision-making and persuasion as the key skills that set billionaires apart, emphasizing the importance of making high-value decisions and the ability to convince others to join and support their mission.

🌐 The Billionaire Investor Portfolio and a Call to Action

The final paragraph presents a visual of the average billionaire investor's portfolio, illustrating how the composition of wealth changes with increasing net worth. It discusses the disparity between the wealth of the top 10% of Americans and the bottom 90%, urging viewers to start investing in assets that appreciate over time. The paragraph ends with a call to action for those interested in escaping mediocrity and a prompt for viewers to subscribe and engage with the content.

Keywords

💡Billionaires

Billionaires, as the central focus of the video, are individuals with a net worth of at least one billion dollars. The video explores their unique perspectives and strategies for wealth accumulation, contrasting them with those of millionaires and the general public. For instance, it mentions that most billionaires do not own 100% of their businesses, citing Jeff Bezos and Elon Musk as examples.

💡Ownership

Ownership in the context of the video refers to the percentage of a company that an individual or entity controls. It is highlighted that billionaires often own a smaller percentage of their companies compared to millionaires, which allows for greater flexibility and potential for growth. The script uses Jeff Bezos owning 12.7% of Amazon to illustrate this point.

💡Real Estate

Real estate is mentioned as a means to become a millionaire, but not a billionaire, according to the video. It suggests that real estate is a 'dumb millionaires game' and that the ultra-wealthy tend to focus more on business interests and private equity, which make up a larger portion of their net worth.

💡Private Equity

Private equity is portrayed as a key component of a billionaire's wealth strategy. The video suggests that private equity investments are more lucrative than real estate and are a primary driver of wealth accumulation among the ultra-wealthy. It contrasts this with real estate, which is seen as a less sophisticated investment.

💡Other People's Money

The concept of using other people's money to become rich is a recurring theme in the video. It outlines a process where billionaires leverage external funding to scale their businesses, thereby increasing their wealth. The script provides a step-by-step example of how this can be achieved, starting from initial investments to eventual public offerings.

💡Buy Low Sell High

This phrase encapsulates a fundamental principle of wealth accumulation discussed in the video. It suggests that all businesses, regardless of the industry, operate on the premise of buying low and selling high. The video emphasizes the importance of optimizing markup and scale to increase wealth, with examples including commodities trading and tech companies.

💡Art as an Asset

Art is presented as a preferred store of value for the ultra-wealthy, due to its portability and potential for high returns. The video mentions that art can be easily moved and used as a bargaining chip, and that blue-chip art has historically outperformed the S&P 500. It also introduces Masterworks, a platform that allows everyday people to invest in art.

💡Stocks and Luck

The video challenges the notion that investing in stocks or relying on luck can lead to billionaire status. It argues that while stocks can be a good investment for those with a long time horizon, they are not sufficient for achieving billionaire wealth. Similarly, luck may help one become a millionaire, but not a billionaire.

💡Crisis

Crises are viewed as opportunities by billionaires, according to the video. It suggests that during economic downturns, billionaires are able to purchase assets at significantly reduced prices, thereby increasing their wealth. The script contrasts this with the general public's perception of crises.

💡Liquid Assets

Liquid assets are those that can be quickly converted to cash without significant loss in value. The video points out that billionaires typically keep less than five percent of their wealth in liquid form, opting instead to use their assets as collateral for loans. This strategy allows them to maintain control of their wealth while accessing cash when needed.

💡Enterprise Deals

Enterprise deals are highlighted as a more lucrative source of income for billionaires compared to direct-to-consumer sales. The video uses Amazon's AWS and Google's cloud services as examples, showing that businesses pay recurring fees for services, which can lead to substantial revenue streams.

💡Decision Making

Decision making is identified as a critical skill for billionaires. The video emphasizes the importance of making high-value decisions that have significant impacts on wealth. It contrasts this with the need for persuasion and sales skills in the early stages of wealth accumulation, suggesting that as one progresses, the ability to make sound decisions becomes paramount.

💡Persuasion

Persuasion is presented as a key skill for success, particularly in the early stages of building wealth. The video suggests that the ability to convince others to join your vision, buy your products, or invest in your company is crucial. It is implied that this skill is essential for scaling a business and attracting the necessary support to grow wealth.

Highlights

Most billionaires do not own 100% of their business, instead they own a significant but smaller percentage, allowing for growth through external investment.

Real estate can make you a millionaire, but private equity is often the path to becoming a billionaire, as it represents a larger share of their net worth.

Using other people's money to grow a business is a common strategy among billionaires, leveraging external investment to scale rapidly.

The 'Buy Low, Sell High' principle applies to all scales of business, from commodities to attention in media, with the goal of maximizing markup and scale.

Art is a preferred store of value for the ultra-wealthy, offering liquidity and the potential for high returns, especially in inflationary times.

Investment platforms like Masterworks enable everyday people to invest in high-value art, democratizing access to a traditionally exclusive asset class.

Stocks alone are unlikely to yield billionaire status; a combination of strategies and a long-term perspective is necessary for significant wealth accumulation.

New billionaires often create a ripple effect, enriching early investors and demonstrating the power of backing promising ventures.

Billionaires typically maintain a small percentage of liquid assets, opting for low-interest loans against their wealth for liquidity needs.

Crises present opportunities for the wealthy, as they can acquire assets at significant discounts, a strategy that has historically built wealth.

Surrounding oneself with experts in various fields is a common trait among billionaires, who rely on this expertise to mitigate risks and seize opportunities.

Enterprise deals often hold more wealth potential than direct-to-consumer models, as seen in the profitability of Amazon's AWS over its retail arm.

Many billionaires have not started from the bottom, often benefiting from family wealth, education, and a safety net that allowed for risk-taking.

The exploitation of cheap labor, particularly in the production of commodities like cobalt, is an uncomfortable reality behind the wealth of some industry tycoons.

A near-sociopathic obsession with money and success is a trait shared by many billionaires, who are willing to sacrifice nearly everything for their goals.

Mastery of decision-making and persuasion are the key skills for wealth generation, with the ability to convince others and make high-impact choices being paramount.

The billionaire investor portfolio often includes a diverse range of assets, with a significant shift towards trusts and away from traditional retirement funds as net worth increases.

Wealth is created by owning assets that appreciate over time, a lesson that differentiates the wealthy from the majority who focus on earning.

Transcripts

as of 2023 there are 3 112 billionaires

in the world the billionaire perspective

on life is quite different from anything

you've ever experienced and it'll

definitely go against many of the things

you believe here are 15 Secrets only

billionaires know

welcome to alux.com the place where

future billionaires come to get inspired

number one you don't usually get to one

billion dollars and still own 100 of

your business

Jeff Bezos owns 12.7 percent of Amazon

Elon Musk owns 13 of Tesla Bernard Arno

owns 46 of lvmh Warren Buffett owns 16

of Berkshire Hathaway Larry Allison owns

35 of Oracle you get the idea most

millionaires are share protective they

guard their shares like Hawks without

realizing they're actually keeping

themselves from accelerating upwards in

a shorter period of time here's a

wake-up call owning 15 in a

multi-billion dollar pie is a lot more

financially lucrative than owning 100 of

your three million dollar business

number two real estate will make you a

millionaire private Equity makes you a

billionaire

the running joke around the ultra

wealthy is that real estate is the dumb

millionaires game you can become a

millionaire in real estate even if you

don't have the brain power to do

anything else ask any millionaire and

they'll tell you almost half 35 to 50

percent of their net worth is tied up in

real estate ask any billionaire and

you'll quickly realize business

interests private Equity make up for

over 70 percent of their net worth the

most productive way to increase your net

worth is by owning a business blow it up

and then use the funds to buy pieces of

other businesses and do it all over

again

number three do not use your own money

use someone else's to make yourself rich

you can literally earn your way to one

million dollars there are plenty of jobs

out there where if you put your head

down put in the Years stack those checks

you'll get to Seven figures doctors

lawyers Tech Engineers they all earn a

ton of money from their salaries but you

cannot get to one billion dollars the

same way your financial life unlocks

vertically when you realize you can use

other people's money to make yourself

rich here's how most billionaires do it

step one the go-to friends family Banks

and Angel Investors with an idea that

they're willing to go all the way to

make it happen they need one hundred

thousand dollars to start the business

and give off twenty percent of the

company this values the company at five

hundred thousand dollars their eighty

percent share of this new business is

worth four hundred thousand dollars and

we barely started

step two they get some revenue and they

build a team ready to scale let's say

the company at this point is making one

million dollars in recurring Revenue per

year

step 3 they then go to some external

investors and sell twenty percent of the

business and a 10 million dollar

valuation meaning they now have two

million dollars in cash and the

remaining sixty percent of the company

is now worth six million dollars

use that two million dollars to go from

one to ten million dollars in yearly

recurring Revenue

step five you guessed it you go to raise

funds again this time at a 100 million

dollar valuation you sell twenty percent

more of the business to get that 20

million dollars at this point the forty

percent you're left with is worth 40

million dollars

step six you use the 20 million dollars

to develop a product for other companies

and hire sales people this blows up your

recurring revenue and in two short years

your company is ready to go public

step 7 you file for an IPO where the

company floats ten percent of its shares

on the public market at a 10 billion

dollar valuation you and everyone that's

invested in your company along the way

is now a billionaire at every stage of

this journey you used other people's

money to scale up to hire people to

develop products to get new sales and

with every one of those moves the

valuation went up now before you call

on what we just told you know

that this is the simplified model uipath

has used to IPO at a 35 billion dollar

valuation and we were fortunate enough

to learn from the founder along the way

number four everything is a Buy Low sell

High equation only the scale differs

some billionaires trade in Commodities

coffee medals Etc others trade in

shipping those Commodities where the

cost of gas people and transport is

lower than what others are willing to

pay you to get it delivered others trade

in Risk in debt Tech and media companies

trade in attention and eyeballs buy them

low sell them high use the profit to do

it larger over and over again once you

understand that every business is in the

Buy Low sell High business the way you

look at yours starts to change there are

two important things to optimize if you

want to be rich one what your markup is

and two what your scale is meaning the

number of transactions you're able to do

Amazon as an e-commerce store has tiny

margins but a lot of transactions Tesla

has incredible margins and a decent

number of transactions a business grows

when one of three situations occur one

you charge more and maintain the same

number of transactions artists use this

model two you charge the same but

increase the number of customers when

fast food chains open up new locations

and three you charge more while

increasing the number of transactions

luxury brands use this strategy which

actually made Bernard Arno the richest

man in the world the secret most

billionaires know is that once you move

into a different bracket of scale you

have incredible negotiating power on how

low you can buy only billionaires know

that the profit is made at the point of

purchase not the point of sale

number five art is a preferred store of

value that can easily be moved around

when you're that rich most of your money

is locked up in stocks other businesses

or hard to move assets you don't want to

keep it in cash because at that scale

cash is losing five to ten percent of

its value year over year due to

inflation so where do high net worth

individuals turn to Art yep they buy art

in bulk lease it off to museums around

the world or seal it off in shipping

containers and use it as a bargaining

chip it's a lot easier to move 500

million dollars in art than 500 million

dollars in gold or silver most people

don't realize that blue chip art is one

of the most profitable Investments out

there fine art is often referred to as

the billionaire asset for a good reason

actually blue chip art not only performs

incredibly well in high inflation

environments like the one we're in right

now but it's traditionally consistently

outperformed form the S P 500 according

to a recent groundbreaking study from

UBS 62 percent of ultra high net worth

investors surveyed allocate a shocking

30 or more of their investment

portfolios into art and collectibles now

we know what you're thinking damn these

Ultra Rich individuals getting an

opportunity to invest in ways that

average people just can't because who

has the money to buy a 5 or 50 million

dollar painting well that's where our

friends at Masterworks come in

Masterworks is a platform that allows

Everyday People to invest in

multi-million dollar paintings for just

a fraction of the price instead of

buying the entire painting you can

invest in shares of it and once that

painting is sold the profits are split

amongst the share owners so far those

profits have been pretty impressive

Masterworks last three art sales

generated net returns of 10 14 and a

stunning 35 percent now since Mass Works

was kind enough to support our community

and thousands of you have been

successfully investing with them go to

alux.com Art right now or click on the

link in the description with it you can

skip their waiting list to join and

start investing like this super wealthy

today

number six stocks won't get you to a

billion and neither will luck

stocks work well when you've got a large

time Horizon and a ton of money to start

with back in the 80s and 90s there was

this trend of financial advice where

they said if you simply invested five

dollars every day in the stock market

starting when you were 20 years old and

kept doing it until you were 65 you

would be a millionaire

and like Ugh yes okay we get it the math

checks out but the market is also

evolving and so are costs these

Financial models tell a fancy tale

that's all surface and we think they do

more harm than good and here's what we

mean by that

Warren Buffett paid 31 500 for his house

back in 1958. adjusted for inflation and

market value that same house costs

around 877 thousand dollars in today's

dollars sixty years later that house

costs 28.3 times more it's the same

house nice and old didn't grow any new

bedrooms take a moment to process this

the house just by doing nothing has

almost matched the performance of

professional investors if you keep

saving the five dollars a day by the

time you get to your million dollar

retirement a million will barely buy you

anything it's the same with luck you

might luck your way into becoming a

millionaire but going from that million

to a billion is a whole different ball

game

number seven every new billionaire turns

other millionaires into billionaires

remember the use other people's money

example well every newly minted

billionaire brings with them those who

believe in their Vision enough to open

up their wallets in the early days Peter

Thiel was the first outside investor to

back Facebook he invested five hundred

thousand dollars in exchange for 10.2

percent of the company when Facebook

ipo'd he sold two-thirds of his shares

for 628 million dollars after investing

500 000 friend of the channel Gary tan

the current CEO of Y combinator was the

first investor in coinbase in 2013. that

initial investment of only three hundred

thousand dollars ended up being worth

2.4 billion dollars go anywhere in

Silicon Valley and these types of

stories always pop up make your money

first and then use it to back promising

businesses one of them might just be the

next Airbnb

number eight less than five percent of

their worth is liquid average people

think the rich are hoarding resources

when they say billionaires they picture

Scrooge McDuck jumping into a vault

filled with gold coins but in reality

almost all of them are paper

billionaires meaning shares they own in

companies are worth in excess of one

billion dollars on paper the assets are

worth as much usually billionaires keep

less than five percent of their worth

liquid and if they do need money they do

not sell their assets instead they go to

Banks show them the paper that says

they're worth x amount and then use that

as collateral for low interest loans the

bank provides them with a line of credit

and they go off to buy even more income

generating assets

when Elon bought Twitter he didn't

actually sell his shares in Tesla or

SpaceX in order to come up with that

money the bank gave him the funds to buy

it here's something most billionaires

know you do not pay tax on debt so they

would rather borrow that money using

their assets as collateral

number nine the real money is made in a

crisis

billionaires look at the world

differently than most people poor people

look at life in terms of Days the middle

class in terms of months the upper class

in terms of quarters the rich in terms

of years and the super rich in terms of

decades people made fun of Warren

Buffett's Berkshire Hathaway for

underperforming for the past 10 years

and critiqued his large cash position

losing its value due to inflation but

Warren and Munger were just sitting on

cash waiting they were okay with losing

one to three percent per year because

when this recession hit they were able

to purchase companies at 50 to 75

percent discounts

for billionaires recessions are like the

Black Friday event of the decade

everything you really want is on sale

and that's one of their secrets it's not

the day today you focus on instead you

make two to three plays per decade which

are strategic for growth

number 10 they all had and still have

experts minimizing risk and increasing

returns there's no such thing as a

self-made billionaire at least not in

the way that people think about them in

order for you to have the time and

mental space to focus on exponential

growth you need to know that almost

everything else is taken care of you

find great accounting firms to mitigate

all Financial Risk you find great legal

firms to mitigate all liabilities great

managers and CEOs steadily take the

company to the next level along the way

you have to rely and Trust other

people's expertise to get you to the

next level all of these billionaires

surround themselves with experts who can

point out exactly the inflection points

and how to position yourself for them

these people are called executive

coaches and every big CEO has a couple

of them on council at this level they

cost between a few hundred thousand

dollars to a couple of million dollars

per year their job is to keep the CEO

focused and provide Clarity of thought

very much like a coach trains and

prepares professional athletes for a big

game just think how incredible it would

be to have one of these world-class

super coaches available to you just how

quickly would your life improve and how

quickly would you crush your goals well

now you can my friend we pay these

coaches on your behalf and you get to

learn from them in the alux app for a

fraction of the cost this way you have

access to not one but multiple industry

experts that are focused on the

Practical side of growth we recently did

a survey among star users and over 60

percent of respondents say they've

already crushed their main goal after

one year of using the alux app with

another 30 percent saying that they're

closing in fast everyone who uses the

app has founded a game changer and we

couldn't be more proud to be the ones

behind it honestly the alux app will

probably create more millionaires than

any Financial book out there so go to

alux.com app right now and just see what

it does for you and your life

number 11 very few billionaires are

direct to Consumer most of the money is

in Enterprise deals

you probably don't realize this but

Amazon's direct to Consumer isn't

actually profitable a couple of days ago

we made a video on why Amazon is

actually losing money on this front

instead Amazon's Cloud infrastructure

business AWS is printing cash 35

year-over-year growth over 80 billion

dollars per year in Revenue almost the

entirety of the internet is now hosted

on Amazon's servers a company is more

comfortable to pay you 100 per employee

that uses your service every month

here's something interesting you might

not know Gmail is free for the average

consumer but for us as a business on a

monthly basis we pay ten dollars for

every business email we have with Google

since we've got over 20 at alox.com

emails for this business alone every

year just for something like email we

end up paying Google thousands of

dollars in recurring revenue and we're

just a small sized company Google is now

bringing in 6.3 billion dollars

quarterly from its cloud services that's

a 25 billion dollar per year business as

long as you do business know that it

takes the same amount of effort to

convince a person to buy as it takes to

convince a business it's still one sale

but the difference in income is

substantial most of you could actually

earn 10 to 50 times more than what you

do but you're deploying effort on the

wrong thing

number 12. most billionaires don't start

from the bottom yep we're going there it

takes a tremendous amount of work to

achieve any form of financial success

these people have earned their way up to

the top but more often than not the

context was a little bit more favorable

to them than you might think most of

them had Rich parents access to high

level education infrastructure and a

safety net if they failed so they could

risk it all a couple of times elon's dad

was a multi-millionaire real estate

developer who married a model Jeff

bezos's parents gave him 250 000 to

start the company Bill Gates mother

comes from some serious money the list

goes on going from zero to a quarter

million dollars takes years for most

people not having to worry about where

your next meal comes from is also what

gives you an edge what all of them have

achieved is incredible so the takeaway

here should be if you're in a position

to have access to education you have a

device to watch this video on and access

to Twitter LinkedIn where you can reach

out to almost any professional in the

world please know that you're also not

starting at the bottom the bottom are

the two billion people who don't have a

phone or internet access but if you're

looking for a more controversial Point

well here it is number 13 most industry

tycoons get Wealthy by exploiting slave

labor where you can't see it and the

world doesn't really seem to care the

phone or laptop you're watching this on

the electric cars scooters drones all

electronic appliances like your fridge

Smart TV Etc they all use Cobalt now

here's a recent picture of what's

supposed to be an industrial Cobalt mind

in the Congo the key word here is

industrial because according to of

official documents from all the major

Tech players not a single human being is

supposed to be digging in these Cobalt

mines the average adult gets paid less

than two dollars a day of bringing

Cobalt up out of the ground they

actually prefer to use children because

they're smaller and cheaper for this

kind of work and none of this is new

information here is a video of children

in a Cobalt mine from six years ago as a

developed Society we enjoy the Comforts

technology brings us because we are

sheltered from the reality of what it

actually takes to be produced assembled

and shipped to you and this is not just

the tech industry the international

labor organization estimates that

approximately 170 million children are

used for production although they are

not old enough to work sustainably in

the fashion industry the children are

literally working in the fields picking

cotton transferring pollen for a little

to no pay that's how fast fashion and

Ultra fast fashion is able to get you

those products so cheaply but hey as

long as you get it for cheap right

number 14. almost all of them are

sociopathically obsessed with money and

success

look here's the truth you really really

need to want it to be able to get to

that kind of wealth as it will require

you to sacrifice almost everything else

in your life you don't have a family

life you don't get to spend time with

the kids you're hyper competitive and

traveling all the time you don't sleep

well at night for years and the amount

of stress you're dealing with is nothing

others will ever experience their brain

is wired differently they look at life

differently and see life as building

blocks life will grant you one wish but

you have to figure out what it is and be

absolutely obsessed with one wish

non-stop for decades not sure many

people are really able to do that

number 15 decision making and persuasion

are the only two billionaire tier skills

the job of a senior executive is to make

a small amount of high value decisions

that have major upsides you are rewarded

based on what percent of times you're

right about your decisions

Warren Buffett is regarded by many as

the greatest investor in the world

because of his ability to consistently

make high-level decisions that generate

a lot of money for the investors the

higher you climb the higher the stakes

with every decision you make if you're

in the earlier days persuasion

translated as sales and clear

communication is probably the most

valuable skill there is you will need to

get people to trust you enough to join

you and create a product you will need

to persuade customers to give you money

for your product and persuade investors

to back your company even if you do not

know how to build something with the

right level of skill you will be able to

convince someone else to build it for

you in exchange for a piece of that

reward as you progress there's always

someone new you need to convince to do

something that will benefit you and the

company moving forward if there's one

thing you take away from this entire

piece it's this

systematically improve your

decision-making process and you do this

by taking your mind to the gym

consistently as a result of learning

mental models the second one is learning

to speak clearly and convince others to

follow you on your mission we feel the

word selling doesn't really seem to do

it justice for what exactly you need to

do these two are the only billionaire

tier skills to master which is why the

alux app focuses on them so much you

know billionaires are a different breed

and we're curious to know have you ever

looked behind the curtain of a

billionaire what did you learn Alexa let

us know in the comments and as a thank

you for watching this Sunday

motivational video until the very end

here's your bonus this is what the

average billionaire investor portfolio

looks like thanks to our friends at

visual capitalist for this visual now

the most interesting thing you'll notice

is just how quickly the retirement fund

becomes irrelevant as you climb in net

worth and how that large position is

replaced by a trust fund the wealthiest

10 percent of Americans own a record 89

of all U.S stocks the bottom ninety

percent of Americans barely have any

investable assets at all so here's what

you need to remember you survive by

earning you get rich by owning if you

don't want to end up like 90 of

Americans start buying things that

increase in value over time if this

isn't a wake-up call to start taking

this more seriously Alexa we don't know

what is it's gonna be a really

interesting year and we feel like a lot

of things might change for you if you're

on a mission to escape media write the

word Escape in the comments that way we

know how many of you are interested in

taking this seriously thanks for

spending some time with us today Alexa

we're so glad you did if you found value

in today's video please give us a like

hit that Bell icon to never miss an

upload and hey don't forget to subscribe

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