I do not think you really know the compound effect.This illustration will teach you how the power of compound effect could be. To be clear, compound effect is simply the effect of compound interest on anything.
Are you currently aware that there are four companies that have a market capitalization of $1 trillion. These companies are Apple, Amazon, Google and Microsoft. Now, imagine combining them into one company. What will be the cumulative market cap? It will be $4 trillion.
That is exactly what compound effect is-when you combine and add up the values of two or more things together, its value will dramatically increase.
Just imagine having a company that has $4 trillion market capitalization? This may look impossible but it can be possible. All one needs to do is to have the above companies in ten places.
That is exactly the pathway for the world to see its first trillionaire. That is exactly what Elon Musk is gradually turning to be. This legend is not solving common problems like software, marketplace, search or providing hardware technologies. Instead he is pursuing to solve greater problems like climatic change, sustainable energy, threat of AI to humans and Having another habitable planet etc. You can see by yourself where I’m heading to.
How will Elon Musk Become the First World Trillionaire?
Jeff Bezos net worth as at February 2020 stands at $125.3B, his stake in Amazon is 12% according to Forbes. Elon Musk net worth is $38.1B and his stakes in his companies are 50% of SpaceX and 20% of Tesla as of February 2020 according to CNBC. You can analyse the comparison.
“The reason why Elon Musk will rise faster in the future than any other entrepreneurs in net worth is simply because he has seemingly impossible problem solving businesses.
I will explain with the following headings.
Success in colonizing planet Mars.
This was Musk’s original idea in founding SpaceX. He wants to make space exploration inexpensive and he wants to reduce the cost by a factor of 10. If Elon Musk succeeded in colonizing Mars it means people will exchange money for the value of going to another planet. Going to planet Mars will seem like going to Paris, it will become the highest luxurious place to visit. It will become the best place to visit either for holidays, for vacation, for exploration, for tourism or to base.
Now imagine the enormous monetary value that will be generated through this feat. Well, I believe if the vision of colonizing Mars becomes successful; it’s only a few companies that will match SpaceX’s valuation or capitalization.
Success in Solving Global Warming Problem
Elon Musk has always had business ideas that tend to solve the biggest of human’s problems on earth. We all know that the problem of environmental pollution has resulted in global warming-a depletion of ozone layer by the emission of carbon monoxide CO.
Global warming is called global goods because it’s a worldwide problem. It is a global system which affects the air. As such, solving the global warming problem will mean solving a global problem. Musk co-founded Tesla Inc. to manufacture electric cars so that if everybody starts using electric cars there will be a reduction in the production of pollution that causes global warming.
Imagine, the business succeeds to the extent that every country adopts electric cars. The monetary success for Tesla and Musk would be amazing.
Success in integrating AI and human brain:
Another very big human problem that may occur in the future is the fact that AI may become a threat to humans. So, steps need to be taken in order to avoid this future problem.
Elon Musk founded Neuralink to develop a device that would integrate the human brain and AI so that both would function with little difference.
Imagine this business succeeds and every human being on earth has to use this device. This will also result in the generation of huge financial returns to Musk and the company.
Now, when you sum up the success of these Musk businesses, then you will know that he could become a $trillion worth entrepreneur in the future. Can’t you see that to Musk as the morning shows the day so the child shows the man.”
These three companies are not the only businesses must have founded, he is also the founder of the Boring company, Hyperloop and others. Just determine the compound effect of these great problem solving and high value unlocking businesses.
Why will Elon Musk become the first Trillionare?
The reason why Elon Musk will become the first person to break this record will be drawn from recent discussion I was part of on Prof. Nduibisi Ekekwe linkedin’s page on why some really smart inventors die poor and why do we found companies.
My response is why Musk will become a trillionaire in the future. They are;
- Elon musk is a very smart inventor and innovator, he has great ideas and solutions to some of the biggest of human’s problems.
- Elon Musk is commercialising his ideas. That is why we have Tesla Motors. A solution to climate change. Neuralink is a solution to the threat of AI to humans and SpaceX is a solution to having another planet to live on.
To be really financially successful in life you must convert your smartness, ideas and solutions to products and services that people will pay you for.
What is your take,comment and contribution. Let’s have a great discussion on this uncommon business topic.