Elon Musk: Big and Small Revolutions

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Years ago I knew Mr. Musk would be big–would be a billionaire. The guy was planning on disrupting several industries. He and partners already disrupted the payment industry with PayPal. Now he’s starting to deliver.

MUSKS’ MANY CONTROVERSIES

Now, I’m aware that the billionaire has received a lot of money from the government (billions?), his businesses haven’t made much, if any, money and that some people just don’t like him, his companies or his politics. I understand.

But…

WHAT THE GUY HAS ACHIEVED

…is so significant that it’s now hard to ignore. Here’s a list of some of Musk’s work that is sure to get longer:

  • Co-founded Zip2 at about 24 years old, sells for $341 million
  • Co-founded X.com, turned into PayPal, sold for $1.5 billion
  • Founded SpaceX private space company
  • Space X successfully, privately and profitably supplies International Space Station
  • Invests in and now runs & controls Tesla Motors (TSLA, $195.64)
  • Tesla grows from $204 million in revenue (2011) to $4.046 billion in 2015
  • Tesla sales estimates are $8.56 billion (2016) and $11.71 billion for 2017
  • Essentially co-founds SolarCity (SCTY, $22.24) by supplying the concept and money
  • Went from non-billionaire to $2 billion net  worth (2012) and currently $11.5 billion net worth

Those are some pretty big successes. I know I can learn a lot from him. I hope he writes a book soon.

SO, WHAT’S THE GUY DOING NOW?

Musk and his companies are busy revolutionizing the way we drive, store solar power, interact with power company monopolies, delivering record-busting sales growth, delivering billions of dollars in cars, privatizing space travel and supply, changing commuting patterns and probably a dozen more things I forgot to mention.

So, yeah, are his stocks risky? Sure. I wouldn’t recommend them. Is he controversial? At times, definitely. Has he taken a lot of money from the government? Yep. Have other wealthy billionaires taken money and breaks? More times than we’ll ever know. But I sure wouldn’t bet against this new titan and his concepts.

Carl Icahn is worried…Should You be, too?

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Carl Icahn In His Latest Video: "Danger Ahead"

Carl Icahn In His Latest Video: “Danger Ahead”

For those of you who don’t know, Carl Icahn is a famous, “shareholder activist” billionaire. He’s even been called a corporate raider for those wanting to insult him.

But, in my opinion, he and his cohorts are a positive force in the market. When there’s an undervalued asset, bad management or other opportunity, these are the guys that shake things up. They own a lot of that particular corporate stock and if you do, too, then you’re in good company. And, most importantly, your stock may go up significantly.

With that said, I have to take his latest video with not a grain, but a wheelbarrow, of salt. I agree with about 90% of what he says except Icahn’s BIG PREDICTION: he thinks there will be a market crash soon that will make all crashes since the 1960’s look minor. I have to say: “Hogwash!”

For context, the worst crash since the 1960’s was The Great Recession we just endured from 2008-09. Very simply, the big fundamentals were going down. Both GDP (the size of our economy) and corporate earnings (the stock market’s major indicator of health or weakness) were going down. And we were at the end of a massive real estate/lending bubble. In other words, the market deserved to go down 50 percent. Which it did.

So, Mr. Icahn, where are GDP and corp. earnings now? Hitting new records. Like they’ve been doing for the last several years. Like they’re estimated to do for as far as can be forecast.

Just a side note: the wealthy and the politicians seem to have lost touch with Main Street. The video also mentioned various bubbles, one of which was an art bubble! Who cares about an art bubble except the ultra-wealthy? It certainly doesn’t cause a tumble in the U.S. economy….

Here’s a link to the complete video via The New York Times: video

Take a look at Icahn’s video. It is really worth watching. Let me know what you think about this billionaire’s thoughts. Please feel free to comment below or contact me any time at RonPhillipsAdvisor@gmail.com