The Best Investments Of Elon Musk

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The Best Investments Of Elon Musk

The Best Investments Of Elon Musk

Elon Musk has a net worth of almost $220 billion as of June 2022, making him by many measures the most successful entrepreneur of the modern era. Before the stock of Tesla (NASDAQ:TSLA) began to decline from record highs along with the rest of the market earlier in the year, his net worth was about $300 billion.

Elon Musk's investing approach is rather straightforward, at least insofar as it has been made public. His investments fall into two broad categories: cryptocurrency and businesses he founded or controls. Musk, unlike many other billionaires, doesn't own a sizable portfolio of investments in publicly listed firms that he isn't actively involved with.

That changed when it emerged that Musk had purchased a 9.2% stake in Twitter (NYSE:TWTR) at the beginning of April 2022. His investment in Twitter, with its market valuation just shy of $31 billion, is a tiny percentage of his total net worth (1.3%, to be precise, assuming he has a net worth of $220 billion). He presently has the most shares of Twitter.

Aside from Twitter, Musk's investments are largely focused on his business ventures. The first category consists of investments in publicly listed stocks, and the second one consists of investments in privately held businesses that he established and still owns. Here is a summary of what is known about Musk's investments in light of that.

Tesla, a leader in electric vehicles, is Elon Musk's only other significant publicly listed equity investment. Musk was one of the company's initial employees as well as an early investor who led the Series A investment round. In 2008, Musk gathered a majority share in the business and assumed leadership.

It's important to remember that during the dot-com boom, Musk was a co-founder of X.com, which eventually evolved into PayPal (NASDAQ:PYPL). He held the position of CEO of PayPal until 2000 and held over 12% of the company's stock at the time. He did possess shares in PayPal before eBay (NASDAQ:EBAY) bought the business in 2002, but he no longer has any. After cashing out, he collected more over $100 million for his investment. Although Musk's stock in PayPal would be worth billions of dollars today, it's difficult to argue that cashing out was a mistake given that he utilized the money to launch Tesla and SpaceX.

The majority of Musk's wealth is comprised of his holdings in SpaceX and Tesla, which have a combined market value of approximately $200 billion. Since the majority of his fortune is invested in his enterprises, he frequently refers to himself as being 'cash poor.'

Musk has also admitted to owning Ethereum (CRYPTO:ETH) and Bitcoin (CRYPTO:BTC), however he has stated that the Bitcoin is worth far more than the Ethereum or Doge that he owns. Significant Bitcoin holdings are also held by Tesla and SpaceX. Musk's total cryptocurrency holdings are unknown, despite the fact that Tesla is known to own over 42,000 Bitcoins, which will be valued approximately $1.3 billion in June 2022.

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