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Elon Musk’s high-profile Department of Government Efficiency (DOGE) has dominated most of the billionaire’s headlines recently, but before that, he was most well known as a wealthy entrepreneur and the founder of Tesla.
Forbes estimates Musk’s net worth at $348.8 billion, and throughout his life, Musk has relied mostly on one kind of investment to build his massive fortune.
For Musk, Business-Building Is the Only Investment That Counts
Billionaires like Warren Buffett got rich by investing in other people’s businesses. Musk got richer than them all by investing in his own.
One of his most famous quotes on the subject, which he posted on X, is, “I always invest my own money in the companies that I create.”
Musk is hardly alone. Although most founders won’t ever amass fortunes approaching a half-trillion dollars, businesses are the undisputed king of millionaire-makers.
Start a Company To Build Wealth
Recent Zippia research found that a full 88% of millionaires are entrepreneurs. In 2024, Forbes broke down why entrepreneurialism mints more millionaires than any other source of wealth.
Businesses generate revenue that can grow indefinitely.
Entrepreneurs can compound their wealth by reinvesting their profits back into their businesses.
The business itself is an appreciating asset.
Business ownership comes with unique tax benefits.
Running a business builds useful and transferable financial knowledge and skills.
Develop Multiple Income Streams for Ironclad Financial Security
Even the most robust emergency fund will eventually run dry if an expensive emergency drags out. However, multiple income sources make the loss of any one much easier to manage — and Musk is living proof.
For example, X lost a lot of its value after Musk purchased it for $44 billion in 2022 — but he had many other lucrative revenue streams to lean on. For Musk, of course, businesses are the source of those streams.
According to Forbes, he owns 12% of Tesla, excluding options, a company worth over $855 billion. He owns 42% of SpaceX, worth an estimated $350 billion, and 54% of xAI, worth a reported $50 billion.
Squeeze Every Possible Dollar
Musk is currently stirring controversy with his quest to root out and eliminate wasteful government spending — but Musk himself has benefited from government funding.
The Washington Post reported that Musk built his business empire on more than $38 billion in government low-interest loans, subsidies, contracts and credits.
So if you qualify for any government programs, from Federal Housing Administration or Veterans Affairs loans to tax credits, follow Musk’s lead and never leave money on the table.
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