Billionaire Boys Club? Elon Musk is Now 3 Times Richer Than Warren Buffett|ManualTrader

Billionaire Boys Club? Elon Musk is Now 3 Times Richer Than Warren Buffett

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Just days after Elon Musk was the world's first person to cross the three trillion dollar barrier, the electric car company of Musk is now valued at over three times its original value. This is some very interesting financial news, and it is sure to have an effect on the future price of shares in both Blue Chip stocks and also in newer, higher float, high value stock companies. Here is the quick background on how this all happened. There was a recent article in the NY Times quoting someone that has firsthand knowledge of some of the inner workings of the oil and gas industry that told the author of the article that he believed that someday Musk would be the richest man in the world.

One interesting thing about this whole scenario is the fact that no one is really quite sure what the cap for Musk is at. In early May, Musk posted a tweet stating that he would be no further down the road at all in terms of his current level of wealth. That tweet came as a surprise to many people around the world, and it also caused quite a stir. With such wealth in the realm of options, is Musk now three times richer than Warren Buffett?

The answer may be hard to fathom, but consider that Musk is the world's first person ever to hit the three trillion dollar mark when it comes to wealth. He also happens to be the world's first person in a long while to do so without having to resort to hard work or stock market gambling. Now, add to that the fact that he is working on a new way to send people across the world, and you have a company headed by a billionaire that is quickly growing into one of the most valuable businesses in the world. This is all in addition to the fact that Musk has no debt, not any loans, and very little to show for his spectacular success thus far. If you can spot out an area where a person with such enormous resources can fall short, you'll definitely know where to invest.

When looking at the numbers, it appears as though Musk has been rather lucky in the sense that he hasn't had to contend with hard times like most entrepreneurs face. The financial troubles faced by many business people and companies throughout the last decade and even the last few decades haven't reached Musk's level of success. Even when considering the fact that he is the world's third richest person, he has managed to keep a fairly high stock price. In fact, if you take a look at the numbers behind him, you'll see that the stock price of his companies has risen consistently during the past year, with the overall value rising by an impressive $1.2 billion.

The real key is in understanding the types of businesses that Musk is involved with today. While many people will assume that Musk is involved with oil and gas, the truth is that he is a huge fan of both of these industries. With his billions, he is able to purchase shares of both oil refining companies and oil companies that specialize in the production of solar panels, making him one of the biggest investors in the booming green technology sector of the stock market today.

By the same token, when you consider the industries that he invests in, you'll find that they are quite diverse. One of the biggest areas of growth for both companies is the field of solar energy. With solar technology accounting for much of the world's current need for renewable energy, it only makes sense for Musk to be involved in this industry. As for his stock price, it has steadily risen, reaching an all-time high of over three hundred dollars per share. While this may not seem like a huge amount of money, remember that these are only shares in a company that is valued at two hundred and twenty five dollars per share.

If you were to invest in stocks that only had a thirty day period of ownership, you would realize that your initial investment would have increased by three thousand six hundred dollars. If you were to calculate the same number over the course of a year, you would realize that you are three times richer. The great thing about these investments is that they grow slowly and steadily, with no spectacular returns. In addition to this, when you take the time to think about how much money you will see after you sell out, you'll find that there is a rather large tax break involved. Musk's stocks are tax sheltered, so that every single dollar invested comes with a hefty twelve hundred and fifty nine hundred and seventy one dollar tax break. This means that you are three times richer as an investor!

While this may seem like some unbelievable news, it is actually the reason that Musk is able to purchase these stocks at such a low price. Tax shelters keep stocks from being listed in the stock market until a full year has passed, allowing the prices on these types of stocks to fluctuate and increase and decrease dramatically. If a company is holding onto these stocks for this long, it is often because the company has a very large order. As we continue to watch elon Musk, it appears that he will begin purchasing large numbers of shares of companies that provide services similar to those provided by Buffet, Wells Fargo and Bill Gates.

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