How to Become a Billionaire | CNBC

CNBC

30 Dec 201404:36

Summary

TLDRThe video script discusses the surprising findings from a book co-authored with Mitch, revealing that most self-made billionaires amassed their wealth in highly competitive sectors like clothing and coffee, contrary to the belief that monopolies are required for success. The script highlights the importance of five key attributes—imagination, execution, risk-taking, timing, and leadership—in creating new markets. It also challenges the notion that success is tied to age, with many achieving breakthroughs between 40 and 50. The narrative includes the story of Sarah Blakely and emphasizes the role of empathetic imagination in predicting market trends, ultimately suggesting that entrepreneurial success is not solely innate but can be learned.

Takeaways

📈 Success in competitive industries: The biggest surprise was that many self-made billionaires made their fortunes in highly competitive industries such as clothing, retail, and coffee.
🤔 Challenging the monopoly myth: Contrary to the belief that a monopoly is necessary for great success, the data shows that success can be achieved in competitive markets.
🔑 Five key attributes: The individuals profiled in the book shared five attributes—imagination, execution, risk-taking, timing, and leadership—that helped them create new markets.
🗓 Age of ascent: A significant portion of these individuals began their rise to success between the ages of 40 and 50, which is later than commonly assumed.
👶 Age bias in tech: Peter Thiel's investment decisions suggest a bias towards younger individuals, but the book's data indicates that success is not limited by age, especially outside the tech industry.
💡 Empathetic imagination: This concept combines emotional intelligence with rational thinking to predict market trends, as exemplified by Jeff Lurie's investment in the Philadelphia Eagles.
🚀 Risk and opportunity: Successful individuals are not just dreamers; they act on opportunities and make them real, even if they might seem irrational at the time.
🔄 Serial entrepreneurship: The data shows that many of these individuals had multiple successful businesses, indicating a pattern of serial entrepreneurship.
💡 Repeatable success: Success is not limited to a single idea or product; many of the self-made billionaires had multiple successful ventures.
👶 Born or learned: While some people may have a natural aptitude for entrepreneurship, the book suggests that most can learn and improve their entrepreneurial skills.
📚 Purpose of the book: The aim is to educate readers on the habits and strategies of self-made billionaires, with the hope that they can apply these lessons to become better in their respective roles.

Q & A

What was the biggest surprise the authors found while researching self-made billionaires?
-The biggest surprise was that four out of five self-made billionaires made their fortunes in highly competitive businesses such as clothing, retail, or coffee, which the authors did not expect.
What are the five attributes that these successful individuals typically possess according to the book?
-The five attributes are imagination, execution, risk-taking, timing, and great producer-performer leadership.
At what age did most of these self-made billionaires start their ascent to success?
-About a third of them started at about 30 or before, while about two-thirds did it between 40 and 50, indicating it's later than commonly thought.
What is Peter Thiel's view on age and success in the tech industry?
-Peter Thiel believes that if you're over 30 or 35, you're kind of done in the tech industry, implying that younger individuals are more likely to succeed.
How does the book differentiate the success of self-made billionaires from those in the tech industry?
-The book suggests that most self-made billionaires are not in the tech area, and their success comes from creating new markets rather than being part of a tech-oriented market.
Can you provide an example of a self-made billionaire whose story was particularly interesting to the authors?
-Sarah Blakely, the founder of Spanx, is highlighted as an interesting case due to her innovative approach to solving a common problem with pantyhose.
What does 'empathetic imagination' mean in the context of the book?
-Empathetic imagination combines emotional understanding with rational thinking, allowing individuals to foresee market trends and respond accordingly.
How did Jeff Lurie's purchase of the Philadelphia Eagles demonstrate empathetic imagination?
-Jeff Lurie's investment in the Philadelphia Eagles showed empathetic imagination as he foresaw the potential of diversified television distribution and the popularity of American football.
What does the book suggest about the nature of successful entrepreneurs?
-The book suggests that successful entrepreneurs are not just dreamers but individuals who take opportunities and make them real, often without knowing the full extent of the challenges ahead.
Is the success of entrepreneurs like Bill Gates repeatable according to the book?
-The book indicates that many self-made billionaires have multiple successful businesses, suggesting that success is not limited to a single idea or product.
Can being an entrepreneur be learned, or is it an innate quality?
-While some people may be natural entrepreneurs, the book posits that the majority can learn to be better entrepreneurs through education and by studying the examples of successful individuals.

Outlines

00:00

💼 Success in Competitive Markets

The speaker discusses the unexpected finding that many self-made billionaires achieved their wealth in highly competitive industries such as clothing, retail, and coffee. Contrary to popular belief that a monopoly is necessary for great success, these individuals excelled by combining five key attributes: imagination, execution, risk-taking, timing, and leadership. The age at which these individuals began their rise to success varied, with about a third starting before 30, and the majority between 40 and 50, challenging the notion that success is limited to the young. The conversation also touches on the idea that success is not exclusive to the tech industry and that serial entrepreneurship is common among these billionaires.

Mindmap

Keywords

💡Fortunes

In the context of the video, 'Fortunes' refers to the significant wealth that individuals have amassed. The term is central to the theme, as the discussion revolves around how certain individuals made their fortunes in competitive industries. An example from the script is the mention of four out of five individuals making their wealth in sectors like clothing, retail, or coffee.

💡Competitive Businesses

This term highlights the industries where the self-made billionaires found success. It underscores the challenge of achieving financial success in markets with high competition. The script notes that the authors were surprised to find that many made their fortunes in such competitive sectors.

💡Monopoly

The concept of 'Monopoly' is discussed as a factor for success, as suggested by Peter. It implies exclusive control over a market or product, which the data from the book does not support as a prerequisite for the billionaires' success. The script contrasts this idea with the reality that the individuals in the study achieved success without monopolies.

💡Attributes

Attributes in this context refers to the five qualities that the successful individuals in the book are said to possess: Imagination, execution, risk-taking, timing, and leadership. These attributes are key to the video's message about the common traits of self-made billionaires and how they leveraged these to create new markets.

💡Imagination

Imagination is one of the five attributes discussed in the video. It is the ability to form new ideas or images in the mind, which is crucial for envisioning new products or services. The script mentions it as part of the combination of qualities that lead to success in competitive markets.

💡Execution

Execution refers to the act of carrying out a plan or making something happen. In the video, it is one of the key attributes that successful individuals have, emphasizing the importance of not just having ideas, but also the ability to implement them effectively.

💡Risk-Taking

Risk-Taking is identified as another attribute of successful individuals. It involves the willingness to take on potential losses in pursuit of gains. The script illustrates this with the example of Jeff Lurie's purchase of the Philadelphia Eagles, which was seen as a risky venture at the time.

💡Timing

Timing is the ability to act at the right moment. In the video, it is highlighted as a critical attribute that contributed to the success of the billionaires. It is about recognizing and capitalizing on opportunities at the optimal time.

💡Leadership

Leadership is the ability to guide and influence others towards achieving goals. The script discusses it as a key attribute that the successful individuals possessed, which allowed them to lead their teams effectively and create new markets.

💡Serial Entrepreneurs

Serial Entrepreneurs are individuals who have founded multiple successful businesses. The term is used in the script to counter the notion that everyone has just one idea in them, showing that many of the self-made billionaires had multiple successful ventures.

💡Empathetic Imagination

Empathetic Imagination is a term used in the script to describe the combination of emotional understanding and rational thinking about market trends. It is about being able to predict where the market is going and understanding consumer needs, as illustrated by Jeff Lurie's foresight in the sports industry.

💡Irrational

The term 'Irrational' is used in the script to describe actions that may seem illogical or not based on sound reasoning at the time of decision-making. However, it is noted that successful individuals are not just dreamers but doers who make opportunities real, even if they might seem irrational in hindsight.

💡Entrepreneur

An entrepreneur is an individual who creates a new business, bearing the risks and benefits of the venture. The script discusses the nature of entrepreneurship, whether it is an innate quality or something that can be learned, and the role of the book in teaching people to be better entrepreneurs.

Highlights

The biggest surprise was the discovery that four out of five self-made billionaires made their fortunes in highly competitive businesses such as clothing, retail, or coffee.

Contrary to the belief that a monopoly is needed for great success, the data shows that these individuals created new markets through a combination of attributes.

The five attributes identified for success are imagination, execution, risk-taking, timing, and great leadership.

About a third of the self-made billionaires started their ascent before the age of 30.

Two-thirds of them achieved success between the ages of 40 and 50, indicating success can come later than commonly thought.

Peter Thiel's investment decision based on age was discussed, suggesting that those over 30 or 35 are considered 'done' in the tech market.

The majority of self-made billionaires are not in the tech area, which may explain the discrepancy in Thiel's perspective.

Sarah Blakely's story was highlighted as particularly interesting, showing how she identified a market need and pursued it relentlessly.

Empathetic imagination is defined as a combination of emotional and rational thinking to foresee market trends.

Jeff Lurie's purchase of the Philadelphia Eagles was used as an example of empathetic imagination leading to success.

Successful people may consider their own past actions irrational with the benefit of hindsight, but they were necessary at the time.

The transcript discusses the idea of firing dreamers in favor of doers who can make opportunities real.

The success of these individuals is not limited to one idea; they often have multiple successful businesses.

John Paul DeJoria's ventures in Paul Mitchell Systems and Patron tequila exemplify serial entrepreneurship.

The book aims to teach readers, especially those in the middle distribution, how to be better corporate executives, investors, and employees by learning from self-made billionaires.

The transcript suggests that while some people are natural entrepreneurs, most can learn to become successful through education and experience.

The purpose of the book is to provide insights that can be applied to improve in various professional roles, with a focus on the new year as a time for learning.