Elon Musk has drawn a lot of concentration by buying a 9.2% stake in Twitter to get a seat on the board of the company. It is also worth an additional $1 billion.
In a new filing Tuesday night, Musk revealed how much he paid for the 73 million shares he began buying in late January and completed with a final purchase on the Friday of that week. $36.16 was the average price per share.
News of his investment in Twitter sent shares up 27% on Monday and another 2% at the close on Tuesday before falling slightly in Wednesday trading. Although that step back in price, Musk is looking at a paper profit of about $1.1 billion on his $2.6 billion investment. The same is equal to a yield of around 40%. Not bad for a two-month investment.
An initial investment of Musk represented less than 1% of his net worth, which Forbes estimates at $282 billion. He may call it a rounding error. It may be a billion-dollar profit. Of course, that amount is couch cushion change for the richest human being in the world.
The Federal Reserve estimates that the median net worth of American households is $121,700. Therefore, if a typical family had the same percentage of increase in net worth that Musk just had made a billion from his Twitter windfall, it would come to a total of $461. It is not accurately ‘earth-shattering.’
So given his sheer wealth, it is pretty well safe to say that no person in the world has ever made an extra $1 billion, which is less than Elon Musk has from a Twitter stake.