How to Become a Billionaire | CNBC

Summary

The 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.