Most financial experts will tell you the same thing: diversify your investments, don’t put too much into one stock—especially your employer’s—and focus on steady, low-risk growth.
But Elon Musk, the world’s richest man for much of the last decade, thinks differently.
In fact, he’s repeatedly told his employees at Tesla and SpaceX that the smartest wealth-building strategy isn’t what most financial advisors recommend.
Instead, Musk’s advice is simple:
Buy shares in a company you believe in—and hold them. Long-term.
It’s bold. It’s risky. And it directly contradicts what most people have been taught about managing their money.
What Elon Musk told his employees
Musk has made no secret of how he thinks about wealth-building. In an internal email to SpaceX employees, he encouraged them to invest in the company during liquidity events—and keep their shares rather than cashing out.
“Don’t bet the farm, but if you believe in the long-term value of SpaceX, I think investing in the stock will be a very wise move.”
He’s given similar advice at Tesla. Musk has often pointed out that people who held Tesla stock through volatility—not traders, but long-term believers—have seen incredible gains.
This strategy—long-term, concentrated conviction investing—isn’t just what Musk preaches. It’s how he became a billionaire himself.
Musk’s own approach to wealth
Elon Musk built his wealth by going all-in—again and again.
After selling PayPal, Musk didn’t cash out and relax. He invested nearly all of his $180 million payout into his new ventures:
At one point, he even had to borrow money for rent.
This type of aggressive reinvestment into concentrated assets—especially his own companies—flies in the face of typical financial advice, which emphasizes diversification and risk management.
But Musk’s approach worked. Today, the bulk of his wealth isn’t from salary or diversified investments. It’s from holding massive stakes in the companies he built—and believing in them for the long haul.
Why this contradicts conventional financial wisdom
Most financial planners advise people to diversify their portfolio across various asset classes:
And they especially warn against investing too much in the company you work for—because if the company collapses, you lose both your income and your investments.
But Musk’s strategy centers around one idea: “Skin in the game” creates real wealth.
If you truly understand a company’s mission, long-term prospects, and growth potential, Musk believes it’s better to concentrate than diversify.
This advice isn’t just theoretical. Some of Tesla’s earliest employees became multimillionaires not because they traded stocks—but because they followed Musk’s advice, bought shares early, and never sold.
Does this strategy work for everyone?
In short: no—not for most people.
Musk’s strategy is extremely high risk. It works best if:
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You deeply understand the company and industry
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You’re in a position to hold long-term without needing liquidity
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The company actually performs well over time
For most everyday investors, a diversified index fund strategy is safer and more consistent over decades.
Even Musk himself has said:
“Don’t put all your eggs in one basket… unless you really know what you’re doing.”
Still, his core message is valuable:
If you’re confident in something—whether it’s a business, an investment, or your own abilities—back yourself. Commit. Be patient.
The takeaway
Elon Musk’s wealth-building advice to his employees isn’t about playing it safe. It’s about belief, long-term conviction, and putting your money where your mouth is.
It’s not the strategy for everyone—but it’s the strategy that made Musk who he is.
In a world obsessed with short-term gains and quick wins, his approach is a powerful reminder:
Sometimes, the biggest returns come from betting on what you believe in—and refusing to sell out too soon.
