New York (CNN Business)Elon Musk has gotten a lot of attention from buying a 9.2% stake in Twitter, along with landing a seat on the company’s board. He’s also worth an additional $1 billion.
In a new filing late Tuesday, Musk disclosed how much he paid for the 73 million shares he started purchasing in late January and completed with a final buy Friday. The average price was $36.16 per share.
The news of his Twitter investment sent shares up 27% Monday, and another 2% by Tuesday’s close, before slipping slightly in Wednesday trading. But even with that step back in price, Musk is looking at an on-paper profit of roughly $1.1 billion on his $2.6 billion investment. That equates to a return of about 40%. Not bad for a two-month investment.
Of course, that amount is essentially sofa cushion change for the world’s richest human being. Musk’s initial investment represented less than 1% of his net worth, which Forbes estimates at $282 billion. A $1 billion profit? Call it a rounding error.
The Federal Reserve estimates that the US median household net worth is $121,700. So if a typical family had the same percentage increase in their net worth that Musk just got from his Twitter windfall, it would total $461. Not exactly earthshaking.
So given his vast wealth, it’s fairly safe to say that no person on the planet has ever needed an extra $1 billion less than Elon Musk.
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