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I don't think that the 80% extends past this guy's sample group of 3000. In fact if you do some "fermi calculations" it doesn't appear to be the case that 80% o

I don't think that the 80% extends past this guy's sample group of 3000. In fact if you do some "fermi calculations" it doesn't appear to be the case that 80% of pentamillionaires in America come from startups. The article claims there are 930,000 pentamillionaires in the united states. 80% of that is 744,000. There are about 1.1 million lawyers in the USA. Let's say the top 10% have a net worth of 5 million. Thus 110,000 of those pentamillionaires are lawyers. So we've got 634,000 left. There are about 700,000 doctors in the USA. 15% of those doctors are surgeons and anesthetists, specialties where you can make $500K/yr. So, 105,000 pentamillionaire doctors... 529,000 pentamillionaires left. 750 MLB players + 460 NBA Players + 1700 NFL players = 2910. Let's multiply that by the past 10 years = 29,000 current or former pro sports players who are pentamillionaires 500,000 pentamillionaires left I'm getting a bit tired to do this math, but it seems like there must be 100,000 guys in the financial sector who have a net worth of 5 million dollars. So - 400,000 left. Add in movie and TV stars, rock and pop music stars, guys who manage movie/TV/rock/pop stars, executives in the entertainment industry, the handful of other sport stars and entertainers who make a lot of money... that's probably another 100K. Down to 300,000. Now think about all the guys who rose up the ranks of fortune 500 companies. There's probably 100 guys at each fortune 500 company who make a mil a year? Now we're down to 250,000. Someone please correct me if I'm padding the numbers too much. I could be dead wrong on the number of rich finance sector guys, or totally wrong about how much money the top lawyers and doctors save. But, I also totally left out other rich people, like presidents of universities, university coaches, directors of rich nonprofit organizations, and so forth. Even if my math is off it really doesn't seem likely that 80% of the pentamillionaires in the USA came from startups. It seems closer to 10-20%, if that. Not trying to be a debbie downer but 80% seems way off the mark.

13ren 18y ago
I don't know about your numbers, except that income does not necessarily imply assets... IIRC, from the survey done for "The Millionaire Mind" (<5, but anyway), many people had a family/lifestyle business. Technically, a start-up, but the corner fish n chip shop is probably not the first image evoked by the term. Another significant factor was frugality. A theory: the enforced savings of a startup is a significant factor in the retention of the created wealth.
pmorici 18y ago
The authors definition of a startup is looser than yours. He is clearly including his example lawyer from the article as one of those 80%. Also I don't think the 930k number includes people who have significantly more than 5 million. There are about 300 million citizens in the US 1% of that is 3 million not 930k. A lot of people like Doctors that make 500,000 a year spend most of that money as they go. hence I would bet a lot of them never make it to the 5 million mark.
maurycy 18y ago
"750 MLB players + 460 NBA Players + 1700 NFL players = 2910. Let's multiply that by the past 10 years = 29,000 current or former pro sports players who are pentamillionaires" It is not that completely different players play each season. I don't have any numbers but I would say that 10% new players each year seems more likely. Also, I don't know exact salaries but I would say that it is winner takes it all. Most players don't have so huge payoff. "There are about 700,000 doctors in the USA. 15% of those doctors are surgeons and anesthetists, specialties where you can make $500K/yr. So, 105,000 pentamillionaire doctors..." You don't know their savings habits. If you make such money and have guarantee of similar earnings in the future, it is hard to resist spending more. EDIT: The problem with entertainment sector is that some of them actually have huge salaries, but they are also forced to spend a lot of money. If you're a celebrity, you're forced by society to rent a jet, wear Dior, own a mansion etc.
- stcredzero 18y ago
  Robert Maxwell was an avowed socialist. He was once a rival to Rupert Murdoch in the news business. He was also called a "champagne socialist." I remember on 60 Minutes, he was asked how he could be a socialist and yet have the private jet and the yacht. He replied that he was forced by his position in our society as a captain of industry to have all the trappings.
- aneesh 18y ago
  Yeah, sports stars and celebs are typically horrible at saving money. It's all spend, spend, spend. There are exceptions, but they're just that - exceptions.
anamax 18y ago
> Now think about all the guys who rose up the ranks of fortune 500 companies. There's probably 100 guys at each fortune 500 company who make a mil a year? Now we're down to 250,000. I used to read Disney's financial reports. They never had more than 3 people making a million/year (yes, including options). I'd be surprised if any company had 100 people making a million/year for more than a couple of years.

13ren 18y ago

I don't know about your numbers, except that income does not necessarily imply assets... IIRC, from the survey done for "The Millionaire Mind" (<5, but anyway), many people had a family/lifestyle business. Technically, a start-up, but the corner fish n chip shop is probably not the first image evoked by the term. Another significant factor was frugality. A theory: the enforced savings of a startup is a significant factor in the retention of the created wealth.

pmorici 18y ago

The authors definition of a startup is looser than yours. He is clearly including his example lawyer from the article as one of those 80%. Also I don't think the 930k number includes people who have significantly more than 5 million. There are about 300 million citizens in the US 1% of that is 3 million not 930k. A lot of people like Doctors that make 500,000 a year spend most of that money as they go. hence I would bet a lot of them never make it to the 5 million mark.

maurycy 18y ago

"750 MLB players + 460 NBA Players + 1700 NFL players = 2910. Let's multiply that by the past 10 years = 29,000 current or former pro sports players who are pentamillionaires" It is not that completely different players play each season. I don't have any numbers but I would say that 10% new players each year seems more likely. Also, I don't know exact salaries but I would say that it is winner takes it all. Most players don't have so huge payoff. "There are about 700,000 doctors in the USA. 15% of those doctors are surgeons and anesthetists, specialties where you can make $500K/yr. So, 105,000 pentamillionaire doctors..." You don't know their savings habits. If you make such money and have guarantee of similar earnings in the future, it is hard to resist spending more. EDIT: The problem with entertainment sector is that some of them actually have huge salaries, but they are also forced to spend a lot of money. If you're a celebrity, you're forced by society to rent a jet, wear Dior, own a mansion etc.

stcredzero 18y ago
Robert Maxwell was an avowed socialist. He was once a rival to Rupert Murdoch in the news business. He was also called a "champagne socialist." I remember on 60 Minutes, he was asked how he could be a socialist and yet have the private jet and the yacht. He replied that he was forced by his position in our society as a captain of industry to have all the trappings.
aneesh 18y ago
Yeah, sports stars and celebs are typically horrible at saving money. It's all spend, spend, spend. There are exceptions, but they're just that - exceptions.

anamax 18y ago

> Now think about all the guys who rose up the ranks of fortune 500 companies. There's probably 100 guys at each fortune 500 company who make a mil a year? Now we're down to 250,000. I used to read Disney's financial reports. They never had more than 3 people making a million/year (yes, including options). I'd be surprised if any company had 100 people making a million/year for more than a couple of years.