“Take Extraordinary, Monumental Business Risks”

Strategy

Billionaires vary in their tolerance for risk, and being a high risk taker isn’t a necessity for amassing impressive amounts of wealth.  Yet, almost without exception, all billionaires take risks at some point in their business careers that others hesitate to take.  Most often, these risks are taken on the basis of intimate knowledge of the business, and when they work out, have the effect of launching net worth into a higher orbit.

Examples

When apple and Microsoft went to court over computer software in March 1989, Steve Ballmer (then the sales manager of Microsoft) purchased $46 million of Microsoft stock.  Within three years, those shares had a market value exceeding $350 million as the court ruled in Microsoft’s favor.

Sam Walton was highly conservative, always avoiding debt.  He did, however, go into debt when bar-coding and satellite communications became available-long before they were proven to be viable ideas for general merchandising.  The adoption of this new technology turned out to be an astute investment which saw Wal-Mart leap ahead of its competitors.

H.L. Hunt parlayed a $50 start-up capital stake in 1921 into a $600,000 pool of capital in 1925 by investing in the oil business.  He then offered to buy an apparently dry oil well from a wildcat driller for $50,000 in cash, $45,000 in promissory notes and a guarantee of $1.3 million should the well go into production in the future.  The owner accepted the offer, and Hunt later managed to turn that well into a huge oil producer which ultimately generated more than $100 million in profits for him.

John Kluge took Metromedia private in a $1.2 billion leveraged buyout in 1984.  He even had to refinance part of the transaction in order to comply with government regulations, using high yield “junk bonds.”  As the prices of broadcasting assets surged over the next two years, Kluge risked everything he had created over the preceding 25 years on the direction the stock market would move from 1984 to 1986.  And in doing so, became a billionaire.

(This is a sample piece taken from Ron’s Getting to the Next Level.  In this home-study course, you’ll be taught how to step out of your comfort zone and learn the biggest keys to quantum growth.  You’ll learn things like how to master the art of a million dollar rolodex, and the five questions you need to ask yourself before you make your next phone call or attend your next meeting. He also teaches the 12 things you don’t need in order to create massive wealth in the real estate game despite what 90% of other people say.  You’ll get your own customized $1,000,000 plan for rapid wealth in real estate, and the five rarely discussed reasons you may NEVER make any real money. These are just a few of the things covered in Getting to the Next Level. For more information, go to your Gold Club Store and click on Read more under the product description.  Don’t forget, you may use Gold Club points to purchase courses.)