Peter Thiel is an American entrepreneur with an estimated net worth of approximately $9.6 billion. This wealth will rank him 215th on the Bloomberg Billionaires Index by mid-2023.
As an accomplished business founder, investor, and author, Thiel is a public figure that investors should learn from.
Image source: Getty Images.
Who is he?
Who is Peter Thiel?
A few years after graduating from college, Peter Thiel co-founded what would become the company. PayPal (PYPL 0.92%), a pioneer in digital payments. Thiel eventually became CEO of PayPal and oversaw its operations. 2002 initial public offering (IPO) and subsequent acquisitions eBay (ebay 0.52%).
Mr. Thiel, who received a hefty salary from the PayPal acquisition, started his own hedge fund. 2004 also saw his $500,000 investment in the company that now bears that name. meta platform (meta 3.43%) — This investment gave him approximately 10% ownership of the business. When his Meta Platforms went public in 2012, Thiel began selling his shares. He continued to sell his shares in multiple transactions over the years, cashing out more than $1.1 billion from his early investments.
Around the same time that he invested in the Meta platform, Peter Thiel Palantir Technologies (PLTR 2.09%). The company remained privately held for many years before going public in 2020. The market capitalization is approximately $20 billion.
In 2001 Thiel wrote his next book. zero to onea book on the New York Times bestseller list.
personal statistics
Peter Thiel's personal statistics
- Year: Teal was born on October 11, 1967.
- Source of wealth: Mr. Thiel has co-founded multiple unicorn companies and has also invested in several successful startups.
- marital status: Thiel married Matt Danzeisen in 2017.
- Residence: Teal, which has properties in California, Florida, Washington DC, and New Zealand, can be difficult to locate. However, his primary residence is believed to be his home in Los Angeles.
- education: Thiel graduated from Stanford University.
investment approach
Peter Thiel's investment approach
There is no one path to success in investing. Multiple strategies may work. Different investors play the game according to their own styles. For example, investor Warren Buffett focuses on more mature and profitable companies. Competitive advantage is likely to be maintained for the foreseeable future.
Peter Thiel, by contrast, approaches investments from the other end of the spectrum, usually from start-ups in the technology sector.
For those who want to learn his style, Thiel outlines many of his investment principles and philosophies in his book. zero to one.
Being in the lead or being exponentially better will lead to your business dominating a large portion of the market, allowing you to earn high profitability on your company's core competencies. From there, companies can use the profits to expand into ancillary businesses.
investment
Peter Thiel's investments
Here are some of Peter Thiel's top personal holdings.
|
name |
ticker |
Market capitalization |
About this company |
teal stake |
|---|---|---|---|---|
|
Palantir Technologies |
PLTR |
$34 billion |
The company's software is used for complex data analysis. |
The company directly holds more than 163 million shares, valued at approximately $2.6 billion. |
|
Absela Biologics |
ABCL |
$2.1 billion |
The company uses software to discover and develop new antibody drugs. |
Over 13 million shares, worth about $100 million. |
|
meta platform |
meta |
$691 billion |
The company owns popular social media apps such as Facebook and Instagram. The company's Oculus headset is one of the best-selling Metaverse hardware devices in the world. |
Less than 14,000 shares, worth about $3.7 million. |
It's worth noting that Peter Thiel is there. do not have one of the founders of Absela Biologics (ABCL 4.0%). Rather, he is a financial supporter and director, as is the case with Metaplatform.
It's also worth noting that Mr. Thiel remains active in several investment funds, including Founders Fund. Founders Fund has invested in a number of promising startups, including the still-private space company SpaceX. Financial technology company Stripe and short-term rental platform airbnb (ABNB 2.29%).
Other articles from this investor
Other articles from this investor
Peter Thiel is not active on social media. However, I do occasionally make guest appearances on podcasts. He is also known for his television appearances, including writing for CNBC.
teal book zero to one It is still ranked in the top 100 books of Amazon (AMZN 1.22%) for entrepreneurship.
Peter Thiel is a great investor
Peter Thiel's investment strategy is clearly working. His success in investing in small and medium-sized enterprises in the past has allowed him to increase his net worth by a huge percentage. And by emulating his thinking, other investors will be able to identify promising startups as well.
However, you should be aware that this investment style can result in significant losses. Thiel has also experienced failure. After all, it is much easier to lose a large amount of capital in an unproven start-up company than in a mature company with a long track record of profitability.
That said, just one winner could wipe out many bad investments and boost long-term portfolio returns, even though Thiel's investment in the Meta Platform was spectacular. can. The trick when using Thiel's investment style is to stick with the winners. Selling winners too early can significantly reduce an investor's long-term performance.
FAQ
Peter Thiel Frequently Asked Questions
What companies does Peter Thiel invest in?
Peter Thiel typically invests in early-stage companies that he believes have strong returns. These companies are often venture capital stage investments because they are not large enough to want to go public.
However, some funds associated with Peter Thiel invest in small-cap stocks, such as his current holdings in a satellite imagery analysis company. black sky technologies (NYSE: BKSY) and biotech companies. Invivid (NASDAQ:IVVD).
What is Peter Thiel's 10x rule?
This is also known as the “10x improvement rule” and is part of Thiel's criteria when looking for potential investments. That is, he is looking for a company that provides a service or product that is 10 times better than his competitors.
In Thiel's view, monopolistic competition erodes potential profits over time. He favors companies whose products and services are so good that they enjoy exclusive advantages.
How did Peter Thiel become so rich?
As seen in this article, Peter Thiel's ownership interests in PayPal, Meta Platforms, and Palantir Technologies have contributed to the bulk of his wealth. But it's also important to note that he used U.S. tax laws to his advantage. In fact, he may have the most valuable Roth IRA of all time.
As of 2023, investors under age 50 can only contribute $6,500 annually to a Roth IRA retirement account. However, the ProPublica report says Thiel was able to use his Roth IRA to buy and hold PayPal's founder stock. And after eBay bought the company, his account was suddenly worth millions of dollars. He then used these profits to invest tax-free in Metaplatform and Palantir.
Thiel's Roth IRA is reportedly worth about $5 billion in 2021, a figure that is out of reach given the annual contribution limits.
Even without taking advantage of the tax law in this way, he probably would have been a millionaire. However, he did not pay taxes on these profits, which contributed significantly to Peter Thiel's wealth. And if you're patient for a few more years, you can start withdrawing this money tax-free, too.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool's board of directors. Randi Zuckerberg is a former head of market development and spokesperson at Facebook, sister of Meta Platforms CEO Mark Zuckerberg, and a member of the Motley Fool's board of directors. Jon Quast has positions at his Airbnb and PayPal. The Motley Fool has positions in and recommends AbCellera Biologics, Airbnb, Amazon, Meta Platforms, Palantir Technologies, and PayPal. The Motley Fool recommends his eBay and recommends the following options: Short put on December 2023 at $67.50 on PayPal and short call on eBay at $45 in January 2024. The Motley Fool has a disclosure policy.
