Chasing Millions: Are You Betting on the Wrong Horse?
Commentary On Wealth Issue #10
"The two hardest things you do as an entrepreneur is ONE, create order out of chaos and TWO, maintain that order in the face of the natural law of the universe: entropy." – Brad Gibb
How Many of You Would Have Liked to Invest in Apple’s IPO?
Let’s kick off with a question: who hasn’t dreamed of getting in on Apple at its 1980 IPO? We all picture that “big win”—a $1,000 investment magically turning into millions. But let’s unpack that journey. Because unless you’re sitting on a time machine, the dream is usually a little different from reality.
I hadn’t run these numbers in a while, so I asked ChatGPT for a breakdown. Here’s what it came up with:
The Start: In 1980, Apple’s IPO priced at $22 a share. With $1,000, you’d get roughly 45 shares.
Stock Splits: From 1987 onward, Apple went through five stock splits, turning those 45 shares into a staggering 10,080 shares by 2020.
The $1M Milestone: By 2012, Apple’s price crossed the $100 mark (split-adjusted), making that original $1,000 investment worth over $1M.
The Catch? It Took 32 Years. Thirty-two years to hit the $1M mark with Apple—one of the most successful companies in history. Think about that. If you’re betting on the “next Apple,” that’s a long time to wait.
The IPO Lottery vs. the Entrepreneur’s Reality
So let’s bring this back to reality. In the year Tesla went public, around 300 other companies also launched on the stock market. Out of those, only Tesla reached unicorn status. That’s a 0.33% shot of picking the winner. On the other hand, your chances of building a business that hits $1M in revenue are around 15%.
This isn’t just about getting lucky. It’s part of a larger reality: scaling to big revenue numbers, like $3M, often involves less friction than trying to scrape by on the “safe” path to $3K. In this previous commentary, I go deeper into why big goals work better for entrepreneurs.
And here’s the crux: investing in your business isn’t just about revenue; it’s about control. Wall Street loves selling you the illusion of security, the idea that “invest and wait” is the smart play. But as an entrepreneur, you know better. Real security isn’t about waiting for someone else to make the right move—it’s about harnessing the chaos you thrive in and turning it into something stable and lasting
The Wealth Pyramid: Entrepreneurs Need Chaos, but Wealth Needs Stability
At Sovereign Entrepreneur, we teach a framework called the Wealth Pyramid, where your wealth grows on a foundation of stability. And that’s the paradox for entrepreneurs: while you thrive in chaos, your wealth actually depends on stability.
Here’s the difference between what we’re building and the stock market: we aren’t playing a waiting game or hoping the market “holds.” We’re building systems—predictable cash flows and resilient assets—that turn your business from a hustle into a fortress. In other words, the Wealth Pyramid is designed to support your unique need for chaos with a reliable bedrock of wealth.
Why Waiting for Wall Street Is Like Thanksgiving for the Turkey
The stock market loves to sell “just wait, it’ll grow.” It sounds good, but it’s built on a lottery mentality. Sure, a $1,000 investment in Amazon in 1997 could have eventually grown to $1M, but that only happened after over a decade. And this is Amazon we’re talking about—a once-in-a-generation success. Waiting for the “next Amazon” isn’t a strategy; it’s a wish.
Now, think about your business. Imagine taking that same $1,000 and putting it into something you control. Something that doesn’t just “grow over time,” but grows because you make it grow. Here’s how to build real, tangible wealth without waiting decades.
A Different Game Plan: Build Stability, Bet on Yourself
If you’re done playing by Wall Street’s rules, here are three moves to build untouchable wealth—wealth that isn’t reliant on luck or the next big IPO.
Build Consistent Cash Flow Models: Design your business for reliable cash flow. This isn’t about cutting corners; it’s about creating systems that provide predictable income no matter the economic climate.
Reinvest in Real Assets: Forget about the stock ticker. Put your capital into assets that directly drive your business forward. Talent, technology, and infrastructure are just the beginning.
Create a Financial Moat: Protect your profits by setting up reserves that guard against taxes, lawsuits, and market chaos. It may not be glamorous, but it’s how you keep your wealth when others are losing it.
Time to Take Back the Odds
Still holding out for Wall Street’s promises? If so, good luck with that. But if you’re ready to take control, to bet on the one thing you know inside and out—your business—it’s time to get serious. Entrepreneurs who see through the market hype and invest in assets they control will lead the future.
Until next time, let’s build something they can’t take from you.
Live Rich. Finish Wealthy.
Brad Gibb
PS—Our team is only opening a limited number of client spots to start in 2025. The January onboarding cohort is already at capacity. If you’re interested in having your own Chief Wealth Officer, apply here to join the waitlist.