Every self-made billionaire made their money on a company before you ever knew that company existed. Businesses that are household names today, some of them with trillion-dollar valuations, were once small, unheard-of companies that grew, went public and made early investors and founders enormously wealthy.
If you want a higher level of wealth, one way to pursue it is to invest in private companies before they go public. Once a company is public and everybody has heard about it, a lot of that money has already been made.
Key points
- Most of the life-changing gains in famous companies accrued before the business was a household name.
- Today’s giant public companies were once small private businesses.
- Investing before the IPO is one way to try to participate in that earlier stretch of growth.
- By the time a company is public and widely known, a large share of the gain has often already happened.
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