How to Think Like a Billionaire

Mar 26, 2014

- By Mark Ford, Founder, Common Sense Publishing

Mark Ford
In his thoroughly entertaining book The Prime Movers, Edwin A. Locke gives this example of the way entrepreneurs think:

An average person observes evergreens growing along the roadside and thinks that they look pretty, especially when partly covered with snow. At this point, his thinking stops. An entrepreneur observes the same trees and thinks, "These trees would look good in people's living rooms at Christmas. I wonder what people would pay for them?"

And he would continue to ask such questions as:
▪  How hard is it to grow evergreens?
▪  What investment is required?
▪  How big should they be before being cut?
▪  How difficult would it be to cut and transport them?
▪  How much would it cost?
▪  How long would they keep before losing their needles?
▪  Where would they be sold?
▪  What would the competition be like?
▪  Could I make other, related products - e.g., wreaths?
▪  Can I make money in such a seasonal business?
▪  How much?
▪  How can I get started?
This kind of active, directed thinking is one of the things that separate entrepreneurs from the rest of humanity. In fact, the most successful entrepreneurs in history - all of them mega-billionaires by today's standards - seemed to have dynamic, pragmatic minds.

Locke gives plenty of examples, including these:

Thomas Edison: He was a "virtual thinking machine. Almost until the day he died, his mind poured forth a torrent of ideas, and he might track as many as 60 experiments at a time in his laboratory."

Steve Jobs: He bombarded people with his ideas - his investors, his board of directors, his customers, his subordinates, and his CEO John Scully.

Henry Ford: "He threw himself into every detail, insisting on getting small things absolutely right.... But he never lost sight of the ultimate, overall objection. He had a vision of what his new car (the Model T) should look like. From all the improvisation, hard thought, and hard work came a machine that was at once the simplest and the most sophisticated automobile built to date anywhere in the world."

You may be thinking, "Hey, I'm no Thomas Edison or Steve Jobs or Henry Ford." Well, neither am I. And I could rattle off a dozen multi-millionaire entrepreneurs I know who don't have that kind of brain capacity either.

Raw intelligence is not the issue. If it were, Einstein would have been wealthy. What matters in the world of commerce is how you think.

Some people, whether because of their upbringing or their DNA, have a natural billionaire mind. But just about anyone who is smart and ambitious can learn to think like a billionaire.

You can transform your mind completely and permanently in a matter of a few short months by making small changes, one at a time. It will take some effort, though. As Joshua Reynolds once said, "There is no expedient to which a man will not resort to avoid the real labor of thinking."

Begin by vowing to talk to every successful person you know or meet. Tell them how much you admire what they have accomplished and ask them how they do what they do.

You may be amazed at how open they will be to such inquiries. Nine times out of 10, they'll be eager to tell you just about everything they know.

Unfortunately, many of the twentieth century's greatest entrepreneurs have been disparaged by historians and the media. As Locke points out in The Prime Movers, if you mention the names Andrew Carnegie or John Rockefeller or Cornelius Vanderbilt to most people, they think "greedy robber barons who took advantage of their circumstances." They know nothing about their accomplishments. What they know, for the most part, is based on persistent myths that prevent them from learning from these men and prospering.

Locke says:

"It is often claimed that the Prime Movers have been viewed with suspicion at best and with distaste or repugnance at worst.... The most basic motive [of those who envy them] is... hatred of the good for being good... it is hatred of the Prime Movers because they are intelligent, successful, and competent, because they are better at what they do than others are.

"The ultimate goal of the haters of the good is not to bring others up to the level of the most able (which is impossible) but to bring down the able to the level of the less able - to obliterate their achievement, to destroy their reward, to make them unable to function above the level of mediocrity, to punish them, and, above all, to make them feel unearned guilt for their own virtues."

When you become super-successful, you'll have to learn how to handle the people who are going to resent you for achieving what they themselves have been unable to do. But first, you have to get yourself into that enviable position. And you do that by practicing the thinking of the great entrepreneurs who thought like billionaires and so amassed billions.

I'll be writing more on this subject in the future. But for right now, here are eight characteristics of the billionaire mind that you can emulate:

1. A "normal" person is concerned with protecting his ego. When dealing with a problem he doesn't really understand, he pretends he understands the contributing factors and doesn't try to find out what anyone else thinks. A person with a billionaire mind asks questions incessantly. He has no ego when it comes to learning. He knows that knowledge is power.

2. A "normal" person has a consumer mentality. He looks at a hot new product and thinks about how he would like to own one. A person with a billionaire mind has an entrepreneurial mentality. He looks at it and thinks, "How can I produce this or something similar in my own industry?"

3. A "normal" person is wish-focused. He daydreams about making gobs of money. A person with a billionaire mind is reality-based. He is always analyzing his own success and the success of others and wondering how he could learn from it.

4. A "normal" person, when confronted with a challenging idea, thinks of all the reasons why it might not work. A person with a billionaire mind sees the potential in it and disregards the problems until he has a clear vision of how it might succeed.

5. A "normal" person resists change. A person with a billionaire mind embraces it.

6. A "normal" person accepts the status quo. A person with a billionaire mind is always looking to make things - even good things - better.

7. A "normal" person reacts. A person with a billionaire mind is proactive.

8. A "normal" person looks at a successful business owner and thinks, "That guy's lucky." Or "That guy's a shyster." A person with a billionaire mind thinks, "What's his secret?" And, "How can I do that?"

Start by being humble and asking questions. Do this until it becomes a habit. Then take on another characteristic of the billionaire mind - like looking at a successful new product and thinking, "How can I do something like that?"

Go through the list, mastering one characteristic at a time, and within three months you will be able to create new businesses almost automatically. You will become a natural leader. Money will flow to you like water coming down a hill. And then you'll be ready to deal with all the "normal" people who are jealous of your incredible success.

Share your views on Mark's "How To Live Like A Billionaire" essay in the Equitymaster Club!

is a serial entrepreneur, author, and founder of Common Sense Publishing in the USA. After more than 30 years in the financial publishing industry his writing on finance, business and economics have become the industry gold-standard. If you're serious about growing your wealth, we highly recommend checking out his 11 secrets to building wealth (Free Access).

Disclaimer: The views mentioned above are of the author only. Data and charts, if used, in the article have been sourced from available information and have not been authenticated by any statutory authority. The author and Equitymaster do not claim it to be accurate nor accept any responsibility for the same. The views constitute only the opinions and do not constitute any guidelines or recommendation on any course of action to be followed by the reader. Please read the detailed Terms of Use of the web site.

Recent Articles

A New Infrastructure Boom March 26, 2019
Selva Freigedo talks about the potential in 5G network and how it could transform the way we communicate.
A 40 Somethings Guide to YouTube Hits March 20, 2019
Vivek dwells into a new YouTube phenomenon.
As the Economy Slows Down, Maruti and Two-Wheeler Companies Cut Production March 19, 2019
The country's largest car maker has cut production by more than a fourth.
In Supporting Demonetisation, RBI Behaved Like an Old Uncle Not Willing to Take a Stand March 13, 2019
The minutes of the meeting of the RBI Board which happened before demonetisation have been released.

Equitymaster requests your view! Post a comment on "How to Think Like a Billionaire". Click here!

1 Responses to "How to Think Like a Billionaire"

Pradeep Kumar Nair P

Mar 27, 2014

Such claptrap!from an intelligent person, Vow!

Equitymaster requests your view! Post a comment on "How to Think Like a Billionaire". Click here!