7 Real-Life Ways To Become A Billionaire

Becoming a billionaire seems like a great goal, but unfortunately it's only a dream for most of us. The thing is, many billionaires didn't start out as such. Some certainly had economic and educational advantages, but even without those, their smart decisions and business choices, plus a few characteristics that can't be overlooked, led them from Point A to Point B (Billionaire). So, what can we learn about our own real-life options for becoming billionaires? (More than 70 years after his death, this man remains one of the great figures of Wall Street. See J.D. Rockefeller: From Oil Baron To Billionaire.)

First things first: find a way to make money. Four of the most oft-methods of money making in the world of billionaires are inventing, investing, innovating and being an entrepreneur, but remember that how you pursue your billions is just as important as what you do to get them.

Do This: Invent

Inventing is a tough road to take, but if you've got the smarts to successfully create, patent, produce and market a product that people need (and thus, will buy in droves), you can build your future billionaire life on it. Successful inventions aren't necessarily complicated or high-tech items, either; James Dyson invented a better vacuum cleaner, and Gianfranco Zaccai invented a better mop, the Swiffer. Seems like things that help people clean more efficiently might be a good market to pursue.

Do This: Innovate

Innovation is the fine art of considering a current mainstream market and finding a creative way to improve the current offering. Successful innovators will identify the real needs behind customer demands, and will meet them with a smarter, better, more efficient product, or with a service that provides more than its competitors, or with a business that works in a way just different enough to stand out from the rest. IKEA founder is a great example of innovation leading to billions; furniture doesn't seem like a very exciting market, but his approach of providing modular, economical pieces with a modern flair from Sweden and other European designers and manufacturers to a global market has taken him all the way.

Don't Do This: Think You Know It All

The moment you think you have nothing left to learn is the moment you kill your potential for becoming a billionaire. Especially if you're interested in building your wealth through inventing or innovating, you have to be curious, open-minded and always learning. Those qualities allow you to look at old things in a new way, to see the potential for change and profit where others see only what already had been done.

Do This: Invest

Warren Buffett, the self-made billionaire, is famous for his frugal ways and for his smart investments. Investing, of course, requires a little seed money and some accurate insight into what investments are smart and what are a waste of money. If you can follow in the footsteps of billionaire investors like Buffett, then this might be the route for you.

Don't Do This: Make Flashy Investments

The latest and greatest is always fun to talk about, and one of the pitfalls of would-be billionaires is to jump in on the "next big thing" which doesn't always turn out to be so big. Investors who make billions from their investments avoid flashy, fun and high-risk picks and instead choose those with long-term potential to provide great returns. Real estate, energy, steel, telecommunications, pharmaceuticals and energy are among the picks, while high-tech and intriguing but risky options may go either way.

Do This: Be an Entrepreneur

The third option for becoming a billionaire is in the time-honored tradition of entrepreneurial pursuits. 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 potential to be great, entrepreneurship can be the vehicle to great wealth. Billionaire entrepreneurs might work in one of two ways: either by coming up with a great idea and taking it all the way, as in the case of Bill Gates and Microsoft. Or by spotting someone else's good idea and investing in it early on, helping to carry it to huge success. Both are viable ways to reach success that can get you into the billions of dollars when it comes to your own net worth. (Quit your job; be your own boss and earn a paycheck. Find out what to do to make it happen, in Start Your Own Small Business.)

TUTORIAL: Estate Planning Basics

Don't Do This: Quit Too Soon

Entrepreneurial types who succeed must realize that success rarely comes overnight. One business idea might not pay off, but the next might. Or your company might hit a low point, and you have to make the choice to hang on with it and bring it back or let your dream die and your debt increase. It's not easy to build something from scratch, especially when your something is a fortune of billions. Time is on your side, if you don't rush it.

The Bottom Line

Of course, luck has something to do with success; it helps to be in the right place at the right time. However, if you don't know what to do when you're there, luck won't help you out much. Smart choices, smart investments and long-term learning and growing will however; once you hit that first billion, remember you heard it here.

By Annie Mueller

Source: http://www.investopedia.com/financial-edge/0311/7-real-life-ways-to-become-a-billionaire.aspx

Facebook Is Poised for a Breakout -- Here's How to Trade It

Shares of Facebook  ( FB) appear to be on the verge of a powerful breakout. The stock closed Monday with a healthy 2% gain with the help of a nice jump in volume.

 

This impressive action has pushed FB to fresh July highs and sets the stage for a Once the $121 area is convincingly taken out, the stock has plenty of room to run higher.

 

Click here to see the below chart in a new window. 

 

 

Back in late April, Facebook exploded to the upside following its first-quarter earnings report. The stock surged over 7% on the positive news but was unable to make any further headway. Two weeks later, after just barely reaching a new monthly high, an ominous top was beginning to form. By the end of May, after just over four weeks of dull post earnings action, it was becoming obvious that Facebook was completely exhausted and would need a deep pullback before getting back on track.

 

Facebook drifted lower through the early part of June, but the downside remained well-contained despite the ominous April/May top. It took the Brexit selling wave to finally push FB down to a major support zone. As shares reached the April 28 earnings breakout gap, which marked the lower band of the support zone, the stock had pulled back 10%. After the dust cleared on the morning of April 28, patient investors where taking advantage of the low-risk entry opportunity, quickly reversing the selloff in the process.

 

At the start of last week, Facebook had rallied 10% off the Brexit low. The stock spent the entire week consolidating the gains as it held in a narrow range just above the 50-day moving average. On Monday, Facebook broke out of this healthy pattern and is now set up well for a new bull leg.

 

In the near term, Facebook investors should take a much more positive view of the stock heading into next week's earnings report. The stock should be considered a low-risk buy near current levels. A close back below $116 would take out last week's low and would reverse Monday's breakout. On the upside, once past the April/May highs, Facebook has plenty of room to run. The stock could travel quite a ways before re-entering overbought status.

 

Of note, Facebook is scheduled to report second-quarter results July 27 after the close.

 

From a fundamental perspective, Facebook is a holding in Jim Cramer's Action Alerts PLUS charitable portfolio. Cramer and Research Director Jack Mohr wrote on Monday that they sold a portion of their Facebook position, which was up about 85% from their purchase price. "The move was driven not by any change in our fundamental thesis, but rather to right-size our exposure and avoid the temptation of succumbing to greed following a parabolic run," they wrote. They added:

We want to make it clear that Facebook remains a core holding and among our favorite long-term investments. The company knows how to execute, understands what its consumers want and has proven adept at growing consistently, rapidly and profitably. The stock's tremendous rally reflects much of these capabilities, however, with expectations already rising steadily ahead of the print as prominent sell-side analysts raise their estimates ahead of next Wednesday's earnings release. We expect the name to emerge as more of a battleground in the near term and prefer the certainty of some tangible profits near term over the risk of event-driven volatility. We leave our $145 price target unchanged.

By Gary Morrow

Source: https://www.thestreet.com/story/13644001/1/facebook-is-poised-for-a-breakout-here-s-how-to-trade-it.html