How do most billionaires make their money?

They are several ways of becoming a billionaire in a tight economy. Some of this ways demand little capital to start off with while some of the ways need huge capital before one can venture in to them. In this article, we are going to focus on only five of the several ways billionaires make their money.


1. Investments

According to, the number one way of getting rich for both self-made and inherited billionaires is investing. And it shouldn’t be a complete surprise that investments are the most common way for billionaires to make their money.

As an investor, you can invest and make money across the board — manufacturing, healthcare, food, tech, etc. — you’re not limited to any one industry. As long as you know how to pick the right companies to invest in, you can make a fortune through your investments.

Banking and finance and industrial conglomerates dominated billionaires’ focus in past years. Nearly 21% of billionaires — 538 of them — made an average of $3.2 billion from these two industries.

2. Tech titans

Today, it’s tech companies like Google and Facebook which are changing the way we practically live our everyday lives. Google kicked off as a research project in Stanford in 1996 and Facebook started life in 2004 as a closed network for Harvard students before morphing into the multi-billion dollar behemoths they both are today and in the process making their founders exceedingly rich. Facebook founder, Mark Zuckerberg, has a net worth of $33.3 billion and was for the longest time the richest person under 30. He’s a little too old for that now, as per

The tech titans average net worth was almost $6 billion each — ”far greater than in all other industries” — primarily because “this figure is heavily skewed by a select group of extremely wealthy individuals at the very top end.”

Five of the 10 richest billionaires have created the majority of their wealth via the tech sector — evidence of the huge gains that can be made in a sector that can cross borders fairly easily, has comparatively low barriers to entry, and can increase in scale much more rapidly than traditional industries, according to a recent report by Forbes.

3. Media

Owning a mega media company like Disney, Fox or CNN might be entirely out of the question for normal folks like you and me. But this is 2020 and the Internet has given us so many ways to create a personal media empire all by ourselves.

Felix Arvid Ulf Kjellberg, popularly called PewDiePie, which is his YouTube name is a Swedish video game commentator who happens to have the most subscribed YouTube channel in the world at a point in time. Only YouTube’s channel had more subscribers than the Swede.

With millions of subscribers, PewDiePie lets viewers watch how he plays video games — along with all the epic swearing, screeching and gibberish he spews out. Seriously folks, he is making a great fortune out of the whole stuff.

4. Real estate

Real estate just has to be on this list because everybody from every works of life have to actively participate in it as everyone needs to buy lands before building a house or an office.

According to fifthperson, an asset like real estate is relatively illiquid and you’re taking on a hefty degree of risk because you need to take on a mortgage, knowing when and how to invest in real estate is another ball game altogether. If you get it right, you’re in for a massive payday. But if you don’t… you could be stuck with something you can’t sell for a profit for a very long time to come.

Real estate has been a way of business for several years now and will continue to be lucrative even as the number of property owners are on the increase.

5. Manufacturing

This is the old fashion way of becoming a billionaire and if you like things the old fashioned way, then manufacturing might be the thing for you. Obviously, you need huge amounts of capital and scale to be successful in this industry.

So unless you have lots of money to start off with, this might be out of the question. But then if you do make it here, the sheer scale that manufacturing requires will make sure that you’ll be making millions in no time flat.

What do billionaires do with their money?

Most billionaires are very meticulous with their money, they are only interested in recycling their money to yield more money, hence they stay rich.

Here are a few things billionaires do with their money:

They Become Entrepreneurs

 Starting a business and taking it to success isn’t always easy, but for those with good business sense and the ability to spot start-ups that have the potential to be great, entrepreneurship can be the vehicle to great wealth. Most billionaires outsource their jobs to ensure efficiency.

They Invest

Self-made billionaire Warren Buffet is famous for his frugal ways and for his smart investments. Investing, of course, requires a little seed money and some accurate insight into which investments are smart and which could result in a loss. If you do not invest your money in other businesses, chances are slim of making billions. They try to diversify their businesses while improving on the existing one.

They are very Innovative

Innovation is the fine art of considering a current mainstream market and finding a creative way to improve the current offering.

Billionaires put a lot of money into research in order to come up with new innovations. Billionaires thrive with prosperous innovations.

What do you think?

Written by Paul

Expert in Digital Marketing, Video Animations, and Business Strategic


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