Forbes lists Elon Musk as one of the richest persons in the world, with a net worth of more than $210 billion. Several of today’s biggest companies were founded by him, or he made early investments in them to get there.
If you had invested $1,000 in each of Musk’s top investments at the same time as he did, you would have made the following amounts of money.
View five of Musk’s investment blunders that can help you as well.
Tesla
In 2004, Musk contributed $6.35 million to Tesla’s Series A funding round. With this, he acquired 12,880,324 shares, or roughly 16% of the business. This translates to a price per share of about $0.493. The market value of Tesla is at $548 billion. Thus, Musk’s initial 16% stake would now be valued at almost $89 billion.
What if you made a $1,000 investment at the same moment as him? At the price Musk paid, you could have purchased roughly 2,028 shares with that money. At the current price of $178 for Tesla stock, you might get a nice $360,984 if you were to sell those shares.
SpaceX
When Musk and his partners sold PayPal to eBay in 2002 for $1.5 billion, they made $180 million. From that fortune, he took $100 million to launch SpaceX in 2002. According to CNBC, analysts now value the company at about $180 billion, which is 180 times what Musk initially invested.
If you had contributed $1,000 to SpaceX at the company’s founding, you could now sell those shares on the private market for about $180,000. Your net worth would increase to $540,984 if you added that to your Tesla investment.
The Boring Company
Musk’s greatest investments to date have been in SpaceX and Tesla. However, he has also performed admirably for The Boring Company, which offers services for building subterranean tunnels and infrastructure.
According to CNBC, Musk contributed over $100 million of his own funds to launch the business. Since then, according to Business Insider, it has skyrocketed to a valuation of $5.7 billion as of the most recent Series C fundraising round.
There is no public market for The Boring Company, and it is unclear how much of the company Musk actually owns. The Washington Post claims that his stock is currently valued at roughly $3.3 billion.
Thus, Musk succeeded in turning a roughly $100 million investment into a multibillion dollar wealth once more. He made his original investment back almost 33 times over. Your $1,000 investment in The Boring Company at the same time as him would now be worth about $33,000. Your running total now stands at $573,984.
Neurolink
Another example of Musk investing $100 million in a start-up in a cutting-edge sector of the economy is Neuralink. According to analysts, the company, which makes brain implants to enhance human intelligence, is currently worth roughly $5 billion.
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The precise ownership proportion of Neuralink by Musk is unknown. If you had invested $1,000 in the business when he initially founded it, however, those shares probably would have been valued at $50,000 today. In the same way that Musk’s first $100 million investment has grown into a $5 billion firm, this represents 50 times your initial investment.
You end up having a total net worth of about $623,984 from an initial investment of just $4,000 when you combine this with the money you may have made on Musk’s other ventures.
How to Make Investments Like Musk
Finding the investments you ought to have made is never difficult until they start to show exceptional returns. How to begin spotting chances such as this before they become fully realized is the actual question. Three tactics that Musk describes in his narrative might assist you in doing this.
Put Money Into The Future
First off, all of Musk’s largest investments have been made in businesses that advance his vision of a better future. SpaceX envisions a world where space shuttles can be reused, Tesla sees a world where cars don’t harm the globe as much, and so on.
Investing for the future might be dangerous. However, they also present a huge opportunity. A company can expand rapidly if it initiates a significant trend ahead of its competitors. That’s how Tesla became the industry leader in electric vehicles.
Don’t Go All in As Musk’s top investments also demonstrate, you should never put all of your money into one business. Musk only put a modest portion of his billionaire status—roughly $100 million—into each new business he founded, even after he attained that status. This demonstrates that despite his strong convictions, he was aware of the hazards and refrained from overinvesting.
Make an Investment in Yourself
Musk concludes by reminding us that investing in oneself can occasionally be the greatest choice. He didn’t invest his early wealth in stock in other businesses. He never stopped starting new companies that he supported, and he has consistently been rewarded for doing so.