4 – What do you think of a billion?

However, few businesses and industries are soaring right now because of the pandemic. among them is the Zoom video conferencing app. Its founder and CEO Eric Yuan just earned $4B in just three months with a huge spike in the use of his service as everyone is working from home nowadays.

Everyone aspires to be part of the three-comma club. There’s even a Bruno Mars song about it. But what does it mean to have a billion? How can you quantify that and will you be able to spend it all in your lifetime? What is a billion anyway and what does it really mean to have a billion? Is it a lot? Is it too much? Is it enough? And how are you going to spend it? 

Turns out being a billionaire is extremely rare, given the following stats:

  • 2000+ billionaires around the world
  • 540+ billionaires in the US
  • 800+ billionaires in China
  • Only 1 in 3.5 million people are billionaires. To give you context on how rare billionaires are, there is 1 in 700K chances of someone getting struck by lightning. That means you are 50x more likely to get struck by a lightning than becoming a billionaire. 
  • If you are a billionaire, you are wealthier than 10 of the poorest countries combined
  • All 2,000+ billionaires are richer than 60% of the world’s population

Read more: What does it really mean to have a billion?

The status of billionaire invites questions: 1 -How did they acquire it? 2 – What are they going to do with it?

It is worthy to note that most of the net worth of billionaires are tied to shares of stock. Most billionaires become billionaires by taking their company public. Being a billionaire does not mean one has a billion dollars in cash. But in our hypothetical ‘what-if’ scenario, we set the parameter to have a billion dollars in cash. What would we do if we have 1B in cash? 

Having a billion dollars in cash is a lot of money. If you spend 1,000 USD everyday (365K a year), it will take you 2,739 years to consume all of it–that’s two millennia, spanning even way before the time Jesus was born! If you do want to consume all the 1B  in your lifetime, you need to spend 40K a day for 70 years.

“If I had 1B in cash, would use 500M for useless things for myself – mansions, cars, travel and gifts for others. For the other half, I would invest it. Even absolutely no-risk 10 year treasury bills with a 1% annual interest will give me 5M a year so you can essentially just live on interest.”

Rachel, WDYTO

Sacrifices for Great Wealth

There is, however, a dark side to being extremely wealthy. 

Many those who have gotten rich quick without even earning that lose it just as quickly too–such as lottery winners. You know what they say, with great money comes great responsibility (to paraphrase Spiderman). 

Your life will never be the same again. There’s a big difference between getting a billion dollars and losing privacy versus getting a billion dollars in secret. Maybe it’s better to get 20 million dollars in secret versus getting a billion dollars and it gets published. 

Wealth makes you an instant target to predators. Money will turn your life upside down and your life will never be the same again.

“I’m going to buy an investor’s visa in Monaco or NZ and buy a house there until I become a citizen there. I would be wise to get out of the country to stay private, and keep myself from contact with would-be criminals, politicians, moochers and users.” – Ken

Wealth makes you an instant target to predators. Money will turn your life upside down and your life will never be the same again.

What would I buy with the rest of the billion dollars? 

  • commercial real estate and condos in big cities around the world
  • farmland, wineries and cattle and horse ranches in South America, Australia and NZ (i would kill myself if I am forced to live in a farmland)
  • big tech stocks ( BRK-A) 
  • bitcoin

What do you think of writing a book? What do you think of…?

In this episode, we talk about the process of writing a book. It's always been my dream to be an author, and I finally got to publish one last year with DCO Publishing. We talk about the process on how to write a book and the challenges to go with it.  — This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app Support this podcast: https://anchor.fm/wdyto/support
  1. What do you think of writing a book?
  2. What do you think of money and how it works?
  3. What do you think of storytelling?
  4. What do you think of my six-year-old's history of the world?
  5. What do you think of harems?

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