How Elon Musk Became the World’s 2nd-Richest Man

Elon Musk’s journey to become the second-richest man shows the world is moving to green tech. Follow these trends and get some riches for yourself.

| More on:

Elon Musk is one of the rare ones; he doesn’t just predict the future but shapes it for everyone. It is innovators like him that enhance our living. I know you are not here to read about all the tech stuff, so let’s jump to the topic. How did Elon Musk become the world’s second-richest man, despite not being an investing genius?

Three investing lessons from Elon Musk 

The heading seems a little wrong. Elon Musk is the person who holds Dogecoin. He said in one of his tweets, “To be clear, I am *not* an investor, I am an engineer. I don’t even own any publicly traded stock besides Tesla.” Then what investing lessons can he give?

First, he invests in future technology that is revolutionary and scalable. He thought about worldwide digital payments in the 90s and introduced PayPal. He also made electric vehicles a reality with Tesla. And now, he is eyeing the moon and Mars with SpaceX and a satellite internet constellation with Starlink.

Second, he holds stocks that he believed in even in sun and rain. Tesla and PayPal have had their share of ups and downs. He kept booking small profits from time to time but stayed invested. With tech stocks, it is more about revenue growth and stickiness of the product. If there is demand and the company continues to innovate, profits will come. Beware of those tech stocks that stop innovating to cut costs and are content with what they have. Technology stagnation has led to the biggest tech failures, like MySpace and BlackBerry.

Third, don’t let market noise distract you. Stay focused and believe in your research. A well-funded and technologically strong company can overcome macro-economic weakness. The only thing that one should fear is a disruptive technology.

Copy Elon Musk with two TSX stocks 

Elon Musk is currently eyeing three tech segments: electric and autonomous vehicles (EV/AV), cryptocurrency, and the internet. These are promising trends, and you can gain exposure to them by investing in these TSX stocks.

The EV stock 

Magna International (TSX:MG)(NYSE: MGA) is Canada’s auto component champion that forayed into third-party manufacturing. Its new CEO, Swamy Kotagiri, is focused on accelerating Magna’s move to EVs and AVs. The company has partnered with several automakers and tech giants, including Google’s Waymo, to build EVs and AVs. It even supplies components to Tesla. Simply put, it aims to become the TSMC and Foxconn of EVs/AVs. This shows that Magna is innovating.

Magna stock has already surged over 80% in 12 months — its highest annual growth rate. But if you look at Magna’s 10-year horizon, a 0.98 price-to-sales ratio is a great value. The EV revolution is still overcoming the pandemic, and the AVs are yet to commercialize. 

The blockchain stock 

Now, I would not recommend a direct exposure to crypto, as there are many moving variables, but the closest you can get is Hive Blockchain Technologies (TSXV:HIVE). This is a blockchain company that runs data farms to mine Bitcoin and Ethereum and also offers hosting services to individual miners.

Off lately, Musk is more in favour of Dogecoin than BTC and ETH and is working on updating the system and making the crypto mining environment friendly. Hive is a part of the Bitcoin Mining Council that is working with Elon Musk and Microstrategy CEO Michael Saylor on renewable energy for crypto. 

Hive is also innovating on the data farm front, finding ways to use its high-performance computing capacity in blockchain computing and artificial intelligence. 

Investor takeaway 

Magna and Hive are indirectly associated with segments Elon Musk is interested in and will benefit from the future tech wave that Musk and other genius tech minds create. If you swim in the direction river flows, you can cover a greater distance with less effort. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool owns shares of and recommends PayPal Holdings, Taiwan Semiconductor Manufacturing, and Tesla. Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry and Magna Int’l and recommends the following options: long January 2022 $75 calls on PayPal Holdings.

More on Tech Stocks

A person uses and AI chat bot
Tech Stocks

AI Where No One’s Looking: Seize Growth in These Canadian Stocks Before the Market Catches Up

Beyond flashy headlines about generative AI, these two Canadian AI stocks could deliver strong returns for investors who are willing…

Read more »

Data center servers IT workers
Tech Stocks

Better Buy: Shopify Stock or Constellation Software?

Let's dive into whether Shopify (TSX:SHOP) or Constellation Software (TSX:CSU) are the better options for growth investors in this current…

Read more »

nvidia headquarters with nvidia sign in front
Tech Stocks

Nvidia Just Delivered a Beat-and-Raise Quarter. There’s 1 Red Flag Investors Shouldn’t Ignore.

The chipmaker continued to benefit from robust demand for artificial intelligence (AI). But can it last?

Read more »

GettyImages-1473086836
Tech Stocks

Why Super Micro Computer Stock Is Soaring Today

The volatile stock is getting a boost from Nvidia.

Read more »

Snowflake logo in snowflake office on wall_snowflake-1
Tech Stocks

Here’s Why Snowflake Stock Skyrocketed Today

Shares of the data company are up 32% for the day.

Read more »

man touching magnifying glass button on floating search bar internet google search engine
Tech Stocks

Why Alphabet Stock Was Sliding Today

The parent company of Google is facing heat from U.S. regulators.

Read more »

chart reflected in eyeglass lenses
Tech Stocks

Top Canadian AI Stocks to Watch in 2025

Celestica (TSX:CLS) stock and another Canadian AI stock are worth watching closely this holiday season.

Read more »

Nvidia Voyager Headquarters
Tech Stocks

Why Nvidia Stock Rallied (Again) on Tuesday

The chipmaker is expected to report earnings this evening.

Read more »