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when you think about the wealthiest
people of the world the first people who
come to mind are Bill Gates Jeff Bezos
Warren Buffett or even this guy but the
problem is that these rankings are made
based on the publicly available
information and it doesn't include
people who are much wealthier than even
Jeff Bezos take an example of the crown
prince of Saudi Arabia or mbss he is
known more famously a 34 years old he
bought a yacht for five hundred million
dollars
a French mansion for 300 million dollars
and for a desert he purchased a 450
million dollar Leonardo da Vinci's
painting even people like Jeff Bezos who
have been dominating the Forbes list for
a few years now would struggle to raise
so much cash to make such an extravagant
purchase it might sound like I'm talking
about some kind of a conspiracy theory
but trust me I am NOT in this video we
are going to explore the five types of
rich people and why Jeff Bezos
isn't the richest person in the world
why the real billionaires are hiding
behind the curtains and would never want
to be seen at the top of the forbes list
let's start with the poorest type of
rich people I know that this sentence is
quite controversial but believe it or
not we have a whole segment of rich
people who appear on the Forbes list
pull the chime I don't even have a few
million dollars they're known as paper
rich they founded a company in Silicon
Valley company seems promising it might
be successful in the future so investors
banks and financial institutions in
general would gladly lend them the cash
they need to get to that position and
start earning money pretty much every
startup in Silicon Valley is like that
the company might have a great product
with hundreds of employees but it burns
more money that it brings in fact some
of the largest companies are still
running like that like uber left and
even Amazon as recently as a few years
ago
Amazon reported its first profitable
quarter just in 2018 so all these people
might claim to be multi millionaires or
billionaires but in reality they
probably can't even pay the wrench
that's why they all strive to become
level too rich if one day your startup
suddenly becomes popular and your net
worth on paper will be let's say five
billion dollars here's a step-by-step
guide on how to turn your five billion
dollars on paper into actual cash first
do your best to create hype around your
app to boost its valuation and then take
it public during the IPO since a lot of
people will be willing to invest in your
company sell a portion of your stake but
not too much since that will devalue
your net worth let's say five to ten
percent Congrats now you have two
hundred fifty million dollars in real
money go and get yourself a mansion for
twenty million dollars a supercar you
always dreamed about but keep a few
million dollars in your account for
emergency cases and the rest invested
into many different stable companies
that actually turn a profit
Forbes might estimate your net worth at
around five billion dollars but you
perfectly know that's not real all you
have is just a few hundred million
dollars of a real wealth take an example
of Evan Spiegel as of 2020 his net worth
is 4.3 billion dollars he should also be
able to buy a act for five hundred
million dollars and a mansion in France
for three hundred million dollars
especially since he holds French
citizenship but he can't this 4.3
billion dollars is only on paper for
mistaken snapchat in practice he can't
even get half of that
snapchat is a huge company and makes a
lot of money but snapchat has never made
a profit it has been two years since it
went public with 218 million users it's
valued at around thirty 1 billion
dollars and Evans net worth primarily
comes from his eighteen percent stake in
this company so even though he's a
billionaire he can't afford a 500
million dollar react like MBS of course
you can argue that he can suddenly sell
his shares and raise a billion dollars
in cash right now
theoretically yeah but in practice not
really if he suddenly sells a large
portion of his stake there will be an
oversupply of snapchat shares in the
market and will drive the price down
which means his net worth will be much
lower on top of that if the founder and
the person who runs snapchat will
suddenly start selling his shares
investors will lose confidence in the
company they might decide to sell their
shares as well which can result in the
crash of the entire company Jeff Bezos
who is the richest person in the world
according to Forbes is also in this
category
let's say you've had a successful IPO
and raised hundreds of millions of
dollars how do you turn the other four
point 75 billion dollars of your net
worth into real wealth here is your
step-by-step guide keep growing your
company but at the same time sell a
small portion of your shares every
single year and invest them in too many
profitable companies in ten or fifteen
years you will successfully diversify
your portfolio and will no longer be a
cashless billionaire the best example of
someone who successfully did this is
Bill Gates he's famously known for
building Microsoft but today Microsoft
makes a small percentage of his
portfolio in fact his biggest stake is
in Bershka Hathaway a conglomerate that
holds many different companies under its
wings so if Microsoft shares suddenly
drop tomorrow his wealth won't be
affected at all since his wealth comes
from many different companies from all
around the world and from many different
industries another example is Travis
kalanick the founder of uber uber has
been around since 2009
but it still hasn't turned the profit
and in 2019 it went public Travis
kalanick one of the founders of the
company slowly stalled off his in charge
take and diversify his portfolio even
before the company made a dime and
profit
[Music]
what could be better than having a net
worth of five billion dollars that's
diversified into many different
companies what interests alone probably
brings you around 500 million dollars
don't have to touch the principle at all
because interest alone will provide you
with an unbelievably lavish life however
the next type of rich people are one
step ahead they are the heads of states
in many countries around the world some
individuals rise to power and
consolidate the power around themselves
and hold on to it until the end of their
lives and while they are in power they
have the entire wealth of the nation at
their disposal is of course you might
have angry journalists throwing at you
uncomfortable questions but you can
always use that wealth to prevent that
from happening
take an example of the former Libyan
president who had an estimated net worth
of 200 billion dollars or the President
of Russia who is in power for 20 years
already and recently changed the
constitution of the country to stay in
power for another 20 years the entire
nation has to pay taxes and you can do
with that cash whatever you wish or the
profits from the national resources will
be under your control you can have as
many private jets as you wish or Reax or
whatever else you desire but this type
of wealth is not sustainable at some
point the people of your country will
get bored with you and would protest and
replace you and the Arab Spring is a
perfect example of that where many heads
of states that were ruling their Nations
for 30 or 40 years were overthrown and
replaced
HR is an oil-rich country that has
probably the highest GDP per capita in
the world a mere Tamim bin Hamad
al-thani
rules it the constitution of this old
rich country basically says a meal or
the head of the state can only be chosen
from the family of Al Thani
and he is the head of the state and the
commander-in-chief of the quatre armed
forces and the guarantor of the
Constitution so no matter what he does
how much money he spends how many
palaces and private jets he buys he
can't be taken down he can spend the
nation's wealth as he desires but most
importantly his son or one of his sons
will be the next king of Qatar and that
is the ultimate level of wealth whether
you own an entire country and Qatar
isn't the only example Saudi Arabia UAE
Jordan are the neighbouring countries
with similar structures of power in the
UK the Queen is the head of the state
and the commander-in-chief of the
British Armed Forces and the government
of the United Kingdom is known as Her
Majesty's Government
she might not control the government
directly but the taxpayers still have to
pay for her lavish life and here entires
family's expenses that are not cheap and
anyone born into this family will
automatically be super wealthy you can
find similar examples in other European
countries in Africa Asia and pretty much
in every continent royal blood is
considered privileged in people for one
reason or another in general would treat
you with someone blessed by God himself
if you are linked to a royal family
that's why history is filled with
examples of royal dynasties people
respect and admire royal families and
consider them upper-class citizens
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