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A Data-Driven Guide to Becoming a Consistent Billionaire

312 pointsby dayveover 7 years ago

19 comments

eksemplarover 7 years ago
I had a month long heated debate in a eco&#x2F;alternative economy political party I was a member of a few years back (I&#x27;m Danish so we&#x27;re talking really liberal), about the value of education. The majority didn&#x27;t value it, and as such didn&#x27;t want our political program to support it. It eventually led me to leaving the party because it was just too silly for my blood.<p>I specifically remember when I used a good friend of mine. A dyslexic CS major, as an example of how you could still have a brilliant career through education, disability training and really hard work - and it was put off by arguments like &quot;well if he had dropped out he might&#x27;ve been bill gates, instead of just running an RND department at IBM&quot;. I pointed out that the likelihood of severely dyslexic Danes with no education (his age), even having a job was very low statistically, but they would hear none of it, because &quot;most billionaires were dropouts&quot;.<p>It would&#x27;ve been nice to have this data back then.
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erikbover 7 years ago
I think the idea to evaluate yourself or other people as Millionaire or Billionaire is crap.<p>Being middle class has value, being upper class has value, being rich has value, having a degree has value, having provided a meaningful recognisable addition to human development has value. It&#x27;s so easy to have such a number drop to 50% or to zero even, without changing anything about your value, your opportunities etc. For instance if Elon Musk lost all his money tomorrow you bet he would still be able to attempt another huge project next week. But if I give you one billion dollar, you might still not be able to start a project of the same size, because you miss the skill, connections, track record etc.<p>The most important thing to worry about is actually doing something valuable for the people around you. The more people you can influence positively the better your life will become as well.<p>Example: In my country there&#x27;s a start-up that tries to revolutionize the train system. All they achieved was to repair one second-hand train, rent the railway slots to drive once up south to north and once down north to south, a few days a week. Then they ran out of money.<p>But! It really influenced a lot of people positively, made great press, showed strong customer engagement. So even after going broke they were able to continue after a short break, because someone bought them. No money, no profit, loads of way-too-hard-work nobody else wants to do. And still they are able to get this working, because they provide something provably valuable.
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paulsutterover 7 years ago
More concise version here:<p><a href="http:&#x2F;&#x2F;longorshortcapital.com&#x2F;four-simple-steps-to-becoming-a-billionaire.htm" rel="nofollow">http:&#x2F;&#x2F;longorshortcapital.com&#x2F;four-simple-steps-to-becoming-...</a>
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noddy1over 7 years ago
Isn&#x27;t &quot;consistent billionaire&quot; a surrogate for &quot;way over a billion&quot; whereas the &quot;non-consistent billoinaire&quot; is someone who makes about a billion? And, does any of this mean anything? who cares?
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geocarover 7 years ago
Erm. Bayes might have some trouble with this kind of analysis. There are around 2,000 billionaires in the world, and over a billion people living in Africa. Anyone moving to Africa with the hopes of becoming a billionaire is going to be disappointed.
robterrinover 7 years ago
Thanks Rosebud! This is a cool analysis, and I really appreciate you sharing the code. There are a ton of ways to pick apart the interpretations, but I feel that you were pretty up front about the difficulties of inferring much. I can empathize with the level of data cleaning fatigue you must have felt. Here&#x27;s an analysis of VC backed enterprise startups that I did for a stats class: <a href="http:&#x2F;&#x2F;robterrin.com&#x2F;MissingData&#x2F;index#1" rel="nofollow">http:&#x2F;&#x2F;robterrin.com&#x2F;MissingData&#x2F;index#1</a><p>By the end, I was pretty much burnt out on this data set to draw many strong conclusions. Still, you busted some myths and flagged some interesting observations for further research. Thank you!<p>P.S. Oops, I realize the OP is not the author, but cool nonetheless.
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dzhiurgisover 7 years ago
Is this supposed to be taken seriously?<p>This looks like a regular degree distribution: <a href="https:&#x2F;&#x2F;theartandscienceofdata.files.wordpress.com&#x2F;2017&#x2F;06&#x2F;billionaire-degree.png" rel="nofollow">https:&#x2F;&#x2F;theartandscienceofdata.files.wordpress.com&#x2F;2017&#x2F;06&#x2F;b...</a>
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davidshalevover 7 years ago
Most of the rich became that way by engaging in unethical&#x2F;immoral acts. Misrepresentation, fraud, financial elder abuse, serial bankruptcies, creating environmental disasters in third world countries without a blink of an eye. They just happen to not get caught or to not engage in activity that is outright illegal. Yes, there are innovators and inventors. They deserve our admiration. But most of the Wall Street and Real Estate billionaires are just people who are less reluctant to engage in certain behavior that is deemed by most as immoral. You can become very rich by selling financial alchemy to old ladies with dementia. Society will deem you as &quot;successful&quot; and a &quot;role model&quot; if it&#x27;s not exposed.
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RosebudAnwuriover 7 years ago
Hello Everyone,<p>Rosebud here!<p>I am overwhelmed by all the responses. I never expected the blog post to garner this much engagement! Thank you so much for all your comments and all the reads.<p>Let&#x27;s keep talking.
dahartover 7 years ago
&gt; &quot;founding_year” is intriguing. It could mean that it may be getting easier or harder to build a sustainable business.<p>It could mean that. It could also mean inflation. The threshold of 1B is worth less and less every year, so the number of billionaires is expected to go up every year, skewing all data toward today.
the_watcherover 7 years ago
&gt; when no one wants to be a Hajime?<p>I understand the author is using hyperbole here, but it&#x27;s a little ridiculous to write that no one wants to have vacillated between billionaire and near-billionaire.
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baxtrover 7 years ago
I would love to see the same analysis for millionaires. A lot bigger sample size to draw conclusions on and more relevant for many people who’s goal is to become rich one day.
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poormanover 7 years ago
Since founding year seems to be of some importance, I would really like to see a plot over time of the number of founders per year and possibly extrapolate founding year + sector to predict what a good time to enter a sector would be. Could yield some interesting results.
fiftyacornover 7 years ago
Its a small point - but its a shame JK Rowling is used as an example of &quot;the ghost&quot; since the main reason she has dropped off is she is giving away her money
brosky117over 7 years ago
All I could think about was Russ Hanneman.
santoshalperover 7 years ago
Well, I&#x27;ll be sure to keep this in mind.
tudorconstantinover 7 years ago
TL;DR be an african 30 something male with a PhD and start a business in telecom
katasticover 7 years ago
&gt;. It’s not shocking that Country and Sector are important variables but “founding_year” is intriguing. It could mean that it may be getting easier or harder to build a sustainable business.<p>It should be pretty obvious that LUCK is a huge factor.<p>It&#x27;s that age old saying... how does it go? &quot;Success is when preparation meets opportunity.&quot; Bill Gates got rich because he was the right guy, at the right time, with the right (completely unfinished vaporware) product when IBM needed an OS.<p>Most of the new billionaires are techies. Techies that happened simply because the world became tech oriented. Surprising... nobody. There are entire billionaire families from previous &quot;Rushes&quot;. The gold rush, oil rushes, wall street, RAIL ROAD TYCOONS, etc.<p>There is no scientific way to guarantee billion-dollar wealth, only correlations. And the only data I see from the article is: 1) There&#x27;s more than one way to skin a cat. Some dropped out, some got Ph&#x27;ds, many stayed in the middle. That doesn&#x27;t matter. Wherever you are now, you can start working. 2) Luck matters. You can be successful but the chances of you exploding is fractions of a fraction.
jonduboisover 7 years ago
There is no such thing as a self-made billionaire. Luck is such a huge factor that it makes the other characteristics irrelevant.<p>I think that there is more to learn about life from a bum on the streets than from a billionaire.
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