TIP052-elon-musk

Executive Summary

 

This article provides an overview of Preston and Stig’s discussion of Ashlee Vance’s book, Elon Musk. If you want to read our executive summary of, this book, view this page instead. If you would like to download all of our book summaries, click here.
This article and podcast answers the following questions:

  • Who is Elon Musk and how will the billionaire change the world?
  • How does thinking like Elon Musk make you think like a billionaire?
  • Ask the Investors: Should I pick different stocks for my Roth IRA and 401(k)?

Who is Elon Musk and how will the billionaire change the world?

Elon Musk is an extraordinary, brilliant man who was the founder of X.com that later merged into PayPal. Most importantly, his companies including Tesla and SpaceX are rapidly engineering everything to ensure that the human race can easily avail renewable, clean energy. With SpaceX constructing its own equipment to reduce the unimaginable costs required to build rockets, Elon Musk might be the person who will first send out humans to Mars.

How does thinking like Elon Musk make you think like a billionaire?

Musk encountered a lot of problems during his early days when he incorporated Zip2, his first venture that was like the yellow pages online. Even before he could sell Zip2, he had already set the ball rolling for X.com. One of the major issues was that the banking rates were extremely expensive and it was also excruciatingly slow. X.com’s vision was to build a payment system where one could send money to another individual by just entering their email address in the site. Today, this idea sounds very simple, but back then, it was enormously efficient for people who had to wait for a long time to send money and also encounter hassles in the banking system. X.com intended to change all that.

Additionally, what is unique about Musk was his exemplary way of thinking and an attitude that matched it. When researching for rockets, Musk had to meet the Russians to buy products that were used to build rockets. The problem was that the materials were too expensive and the Russians didn’t seem to be very cooperative either. Most entrepreneurs will usually try their best to negotiate in such deals, but Elon Musk is a step ahead in that arena too. Instead of looking for cheaper deals, he immediately got down to business and started the process to begin the production in his own company. Simply put, his company produced everything that was required for their own use.

When you start off with your own business, you might encounter a few problems during your journey. Likewise, Musk had his share of problems and was very close to going bankrupt. In fact, he also sold his prized possessions including his cars to arrange for more money. Businessmen, investors and experts will argue that it’s a foolish decision to gamble with everything you have; however, Elon Musk was undaunted and invested most of his personal money on businesses like PayPal, Tesla and SpaceX. It surely worked out for him, but it’s certainly not a mean feat. He also had no qualms about moving into his in-laws’ basement to save money and keep the company going!

Elon Musk has succeeded mainly because of the way his analytical mind thinks. He wanted to change the world and he is getting closer to his dream every day. He thinks differently, even if it’s about something that’s as simple as a car or a phone. He actually changed the way people perceived cars. Tesla simply doesn’t produce cars meant for transportation, but these cars are designed in such a way that they get better with time. The models released by Tesla are in much demand mostly because of the way it’s engineered. Elon Musk has been instrumental in not only producing cars that are worth every penny, but he is also dominating the space industry with his radical thoughts and outstanding capabilities. In order to think like Elon Musk, you have to look and think about everything as you want them to be, rather than just seeing them for what they are.

Ask the Investors: Ask the Investors: Should I pick different stocks for my Roth IRA and 401(k)?

Investors usually handle their retirement plans in different ways, and when it comes to stocks, the situation is no different. For example, many people will tell you that you have to include your growth stocks in your Roth RA and take that away tax-free since you’re using tax-free dollars. However, it doesn’t make much sense because you’ll always strive to maximize your return, i.e. finding the best stocks and ETFs available. Whether you’re paying tax for it or using after-tax dollars, the situation is similar.

Books and resources mentioned in this episode Walter Isaacson’s book, Steve Jobs – Read review of this book. YouTube https://www.youtube.com/watch?v=mh45igK4Esw