# How Elon Musk Became the World's Richest Man

Canonical: https://tradersdailydirection.com/how-elon-musk-became-the-worlds-richest-man/

Still think value investing is the way to go?

Consider this…

[**Elon Musk made more money**](https://tradersdailydirection.com/why-i-bought-tesla-yesterday-how-to-trade-along/) in the last _90 days_ than Warren Buffett made in the last _90 years_!

![Total net worth Ranking](https://lh6.googleusercontent.com/HgLYLpciB1nejwqzGMIeqIFoOdJuPXd43AvNfX4qG0dr9ZzuPydLVy63-jz0C-AERKRzMvC-O0URrY64uPRi7jILZemJEgawF1vK9LYGj8ItNf3QclJjWSGd2kmeMyCxTEF3dLa8)

In fact, the **Tesla, Inc.** (TSLA) CEO is now worth more than [**Bill Gates and Warren Buffett**](https://tradersdailydirection.com/i-feel-like-im-taking-crazy-pills/) combined!

So how did he do it?

Index funds? ETFs?

[**A diversified portfolio of underpriced value stocks**](https://tradersdailydirection.com/heres-why-diversification-is-for-suckers/) that, hopefully… one day… will appreciate in value?

No. Not even close.

## **Becoming the World’s Richest Man**

This unprecedented increase in wealth came from a highly concentrated position in a market-leading growth stock.

Despite earning a $0 annual salary, Musk owns 20% of Tesla stock.

And the recent surge in the TSLA share price has secured his title as the world’s richest man.

![Weekly Comparison Chart of Telsa, Inc. (TSLA) & Berkshire Hathaway Inc. (BRK.A)](https://lh6.googleusercontent.com/s8lKAWH76A8ixasH8Mt5hjMd4ypGajs8D7JyGkApTMhOzIZhaDNwKuSDmD_6vZ6jlvjFfkn0K2aXy_oGQGgRmnWu4z7Fbs846uzVLteL1EcME8IEh-Ty8cv5CRTwI9OwJ_Qamemz)

**_Weekly Comparison Chart of Telsa, Inc. (TSLA) & Berkshire Hathaway Inc. (BRK.A) -- Source: TradingView_**

TSLA is the furthest thing from a value stock.

At the start of the year, Tesla had a price-earnings (PE) ratio of 1,160.

That’s _4,000% higher_ than the market average.

[**But as I continue to preach, fundamentals no longer matter**](https://tradersdailydirection.com/how-to-use-the-pe-ratio-as-a-profit-signal/)…

At least not in the traditional sense.

Stocks do not rise and fall according to book value and PE ratios.

A stock is worth what someone else will pay for it. Period.

[**Supply and demand**](https://tradersdailydirection.com/heres-what-a-textbook-breakout-looks-like/) are what move prices.

Therefore, stocks that are in demand (like TSLA) will see their prices go up.

[**And those viewed unfavorably will continue to fall**](https://tradersdailydirection.com/heres-why-facebook-stock-is-crashing/) – no matter how good the fundamentals appear.

Embrace the Surge,

![](https://lh3.googleusercontent.com/NB_cHajt0xvHCZ_gqv9Xde2-S0fNLhq0u5YOo0x28oZM7u2eaKmfb05g2-FN6W2KDU8FU2ZilOE3Y0XNKWiuHecvXcv3VKNg4x9sWX9cUiTml9dblJGN5t9nyvdKJ_sEdx5QE5x-)

Ross Givens

Editor, **_Traders Daily Direction_**