Jeff Bezos convinced his siblings to invest $10K each in his online startup called Amazon and now their stake is worth over $1B — 2 ways to get rich outside of the S&P 500
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Jeff Bezos' siblings, Mark and Christina, took a leap of faith by investing $10,000 each in a fledgling online book store. Their decision to purchase 30,000 shares of Amazon.com Inc. back in 1996 was a risky move.
Bezos tirelessly convinced family members, friends, and potential investors, looking for money to help bring his vision to fruition. But gaining support from investors for his then-high-risk venture wasn’t easy.
According to the book “The Everything Store: Jeff Bezos and the Age of Amazon” he said this to them at the time: “I want you to know what the risks are because I still want to come home for Thanksgiving if this doesn’t work.”
While his brother Mark Bezos’ current net worth is unknown, he and his wife Lisa had reportedly made over $600M in profits from those original Amazon (AMZN) shares as of 2018.
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Mark’s current stake in Amazon is also unknown, but it is estimated the value of the siblings’ shares would have soared beyond the billion-dollar mark by now, according to a Bloomberg report.
Meanwhile, Jeff Bezos reclaimed the title of world’s wealthiest person from Elon Musk last month thanks in part to Amazon’s market performance, according to the Bloomberg Billionaire Index. Bezos’ net worth has increased by about $23 billion so far in 2024, while Musk’s net worth has taken a $31 billion hit as shares of Tesla (TSLA) have tumbled by roughly 24% year-to-date.
Whether you have $10,000 or just $100 to invest, there are multiple ways you can build wealth, that don’t include playing the stock market or getting your family on board for a risky entrepreneurial venture.
Invest in real estate
Investing in real estate is an inflation-resistant pathway to growing your wealth, but it often involves the hurdle of purchasing physical properties and the risks and responsibilities that come with being a landlord. But there are ways to invest without all those hassles, and you don’t need to have millions already in the bank to do it.
For instance, Arrived is an online platform, backed by world-class investors including Jeff Bezos himself, where everyday investors can invest in shares of rental homes and vacation properties, allowing you to get your foot into the real estate market without taking on the responsibilities of a landlord.
Arrived allows you to browse through their curated selection of homes, each vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy and start investing with as little as $100.
Read more: Jeff Bezos and Oprah Winfrey invest in this asset to keep their wealth safe — you may want to do the same in 2024
Invest for the long term
Amazon continues to thrive in today's rapidly evolving digital landscape, owing much to Bezos’ entrepreneurial spirit and his smart financial decision-making skills that set him up for long-term success.
Bezos retired as Amazon's CEO in 2021 at age 57 with a net worth of roughly $199 billion, according to Business Insider. His fortune, at that time, was 739,489 times the median net worth of an American at the age of 65.
While most of us will never have a nest egg of that magnitude, it is worth asking yourself: What does long-term financial success look like for you? For many, that means investing in a way that sets you up for your dream retirement, one where you don't have to worry about your income once you've stopped earning a salary. And that all depends on the investing choices you make today.
If you want to avoid the ups and downs of trading stocks, you have a couple options for growing your money over the long term with assets classes that generally help to hedge against inflation.
One option that can allow you to grow your money over the long term is Compound Real Estate Bonds, a company that offers an opportunity to earn 8.5% APY through their SEC-qualified Real Estate Savings Bonds.
Compound focuses on income producing real estate and real estate private credit. And by choosing to invest with Compound, you can boost your savings over time and also enjoy the freedom of no fees or lock-in periods, with the flexibility to withdraw your funds whenever you need to.
One retirement focused option would be putting money into an IRA account. By opening a Gold IRA with the help of American Hartford Gold, you can benefit from the tax and other advantages of an IRA as well as the inflation-resistant properties of investing in gold. A gold IRA gives you the opportunity to diversify your portfolio finances by investing directly in physical precious metals.
When you join American Hartford Gold, you’re eligible to get up to $10,000 in complimentary silver and a free investor guide that can help in both the protection and growth of your wealth.
Don’t miss out on the market
Earlier this year, Bezos sold 14 million shares of Amazon.com Inc. worth $2.4 billion, the last batch in his plan to sell 50 million shares by Jan. 31, 2025. With this latest transaction, Bezos has cashed out a total of $8.5 billion.
While you may not be trading with billions, it can be daunting for everyday investors to decide where to put their money for the highest returns.
But you don’t have to do it alone. With expert stock analysis and access to a community of online investors, Motley Fool Stock Advisor can be your go-to resource for information on the best investment strategy for your portfolio.
Motley Fool Stock Advisor is a subscription-based platform that offers users expert market insight and stock recommendations to help pinpoint companies with high potential for outperforming the S&P 500, so you don’t have to stress whether you’re making the right investment.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
