There are 140,000 Americans who earn > $1.58 million per year.
They run an unsexy business like a gas station, auto dealer or beverage distributor.
What else can we learn about the typical "rich american?"
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1. Equity makes you rich
“The three most harmful addictions are heroin, carbohydrates, and a monthly salary,” says Taleb.
The top 0.1% do not make their money from a salary. They own their business.
2. Rich people own unsexy businesses
Most aren't starting SaaS companies or building audiences.
They own auto repair shops, gas stations and business equipment contractors.
3. They avoid ruthless competition
Auto dealerships get exclusive rights to specific territories.
Beverage distributors benefit from the laws preventing the producers from selling themsleves.
4. They leverage specialty knowledge
10% of owners of market research businesses are in the top 0.1% of wealth.
They use analytical skills and deep experience to charge a premium for their knowledge.
To summarize, the path to wealth doesn't run through the Ivy League and Goldman Sachs. Instead it involves:
1. Owning Equity
2. Owning Unsexy Businesses
3. Avoiding Competition
4. Leveraging Specialty Knowledge