Rolls Royce. Ferrari. Lamborghini. Bentley.
They’re some of the most coveted, most expensive, most exclusive cars in the world. Some of the most iconic “status” symbols ever created.
Pull up to a busy store or restaurant in one of these cars, and dozens of people will stop what they’re doing and stare.
But to Daniel Macdonald, they also make a simple, powerful question instantly come to mind…
“What does the person driving that car do for a living?”
Some of the cars I just mentioned sell for well over $1 million – used. So, Macdonald can’t help but wonder how their owners made enough money to buy one.
Macdonald makes the popular “What Do You Do for a Living?” videos. With an audience of nearly 12 million people in 2021, Macdonald – better known as Daniel Mac – likely makes well over a million dollars a year, just from ad revenue, from his massive following.
His most popular videos, which are featured on social media platforms TikTok, Instagram, and YouTube, are less than 30 seconds long. These videos usually consist of Macdonald running up to an exotic, expensive car and asking the driver, “What do you do for a living?”
I love watching Macdonald’s videos. It’s like a guilty pleasure of mine, where I’ll just sit for 10 minutes and watch a couple dozen of these short interviews. They provide great entertainment value. To be honest, when I see someone driving an expensive car, I wonder the same thing.
But for anyone looking to acquire wealth or build more of it, these simple videos contain one of the most powerful investment lessons on the planet.
The vast majority of people that answer Macdonald’s question answer it with things like “I own a real estate company” or “I own a healthcare company” or “I own a software company.”
It’s always fascinating to understand how people have created wealth for themselves. There are, of course, an infinite number of ways to generate massive sums of money – but almost every single person that Macdonald interviews has something in common…
They own, started, or invested in private companies.
Don’t take my word for it.
Go watch some of Daniel’s videos.
Macdonald literally goes around the world asking people who drive expensive cars how they made their money… and nearly all of them say something about a private business they are involved in.
If you think about it, generating large sums of wealth from private companies makes complete sense. Private companies often have leaner teams and less scrutiny, and they allow owners/investors in the company to be closer to the profits.
And that’s not all. Early founders and investors in private companies own amounts of equity that exponentially increase in value over time. As a company grows in value, early equity holders experience dramatic increases in their own personal wealth.
Now, you may be thinking to yourself, “But I’m not an entrepreneur and I don’t know how to start a company that grows to make billions of dollars! How will I ever own equity in a company that will eventually be worth millions?”
The short answer to that is this: Be an early investor in companies that have massive growth potential.
Now that the U.S. Securities and Exchange Commission has changed investment rules for non-accredited investors, just about everyone can now participate in early-stage private companies.
Companies like SpaceX and Instacart have already raised capital from non-accredited investors and are now valued as “decacorns.” (A unicorn is a private company valued at $1 billion-plus. Decacorn = $10 billion-plus.)
Those early investors’ equity is now worth significantly more than when they first invested (as in, many multiples more).
If you missed out on those two companies, or the more than 800 other private companies that are now unicorns, don’t worry…
Our world is currently going through massive change, and the fastest-growing companies of the future are still private and still in their very early, sub-$1 billion stages.
For investors looking to make life-changing returns – to really transform their wealth – there is no better place to focus on right now than private investments.
So, stay tuned here at Venture Capital Digest. I’ll be covering some of the best places to look for private investments around twice per week in these pages… you won’t want to miss it.