Wealth Compounds to 100M

A framework for building wealth through compounding, focusing on steady business profits and reinvestment over a 30-year period.

Core Compounding Strategy

• Start with $1M at age 30
• Generate $300K-500K annual business profits
• Reinvest profits at 10-12% return rate
• Target outcome: $100M by age 60

Key Milestones

• Age 50: Approximately $50M
• Age 60: $100M
• Follows "double every 7 years" rule at these rates

Real World Implementation (Andrew Wilkinson's Experience)

• Started with businesses making $100K-200K annually
• Grew to $50M+ in annual profits across portfolio
• Achieved ~40% compound returns through:
  • Buying businesses at 3-10x earnings
  • Using 20-30% debt leverage
  • Doubling business earnings within 1-2 years
  • 2-5 year payback period on investments

Important Considerations

• Living expenses not included in calculations
• Higher returns possible with skilled operations
  • Real estate can outperform market average
  • Business ownership provides leverage advantages
• Don't need massive outperformance
  • Even 10-15% returns compound significantly
  • Just need to do "a little better than everybody else"

Business Longevity Factors

• Focus on businesses with staying power
  • Service businesses (consulting, digital transformation)
  • Physical products with proven demand
  • Traditional businesses (restaurants, bakeries)
• Consider platform dependency risks
• Look for businesses that can persist for 20-30+ years