How to Make $23M/month The Quiet Way

How to Make $23M/month The Quiet Way

Understanding the Seven Levels of Wealth

Introduction to Wealth

Being wealthy is often misunderstood; it is not loud or complicated. Many average people achieve wealth daily.

The speaker, a CEO of an air filter company making $23 million monthly, emphasizes that most levels of wealth are more accessible than perceived.

Level One: The Dividend Lifestyle

This foundational level involves low expenses, quick mortgage payoff, and consistent investment in index funds over 30 years.

Key habits for achieving this lifestyle include living below means early, automating investments like bills, and maintaining low fixed costs (especially housing).

To calculate financial independence: multiply annual spending by 25 (e.g., $40k/year = $1 million needed). A 4% withdrawal rate allows sustainable living off investments.

Saving 15% of income can lead to financial independence in about 30 to 35 years without complex strategies.

Level Two: The Cash Flow Operator

This level describes individuals who run businesses but remain tied to their operations (e.g., HVAC business owner Mike). They may appear successful but lack freedom due to constant demands on their time.

Transitioning from operator to owner requires changing one's identity; operators focus on doing while owners design systems for growth and freedom. Trusting systems over personal control is crucial for this shift.

Level Three: The Portfolio Builder

At this stage, individuals become strategic with their money by seeking local investment opportunities rather than relying solely on traditional dividend stocks or index funds which yield lower returns (3%-5%). Instead, they look for inefficiencies that can yield higher returns (10%+).

Practical investment types include:

Small commercial or mixed-use real estate that is often mismanaged and undervalued due to poor management practices. Understanding location and demand can lead to strong cash flow without significant effort.

Passive ownership in local businesses where trust exists between investors and operators; these deals prioritize speed and simplicity over maximizing profits.

Local financial assets and private partnerships focused on generating income rather than high-risk ventures; liquidity is essential at this level—keeping 10%-20% of net worth available for new opportunities is recommended.

Level Four: The Rollup Operator

This level focuses on scaling existing successful business models rather than starting new ones from scratch; leveraging proven playbooks can accelerate growth significantly compared to traditional startup methods. []

How to Scale Your HVAC Business and Create Wealth

The Roll-Up Strategy in HVAC

Many HVAC companies excel in technical skills but struggle with business management. Acquiring a competitor for $900,000 can transform their profitability by integrating them into a more efficient system.

After five years of strategic acquisitions, one can scale from multiple small businesses to a single entity generating $30 million in revenue and $5 million in profit annually through standardization.

Successful roll-ups require three conditions: the core business must operate independently, there should be a clear and repeatable playbook, and strong execution discipline is essential for integration success.

A readiness test for acquisition involves assessing whether adding another location would complicate operations; if it simplifies them, you're ready to leverage acquisitions effectively.

Becoming a Category King

The next level of growth involves dominating an entire industry rather than just being a retailer. This requires controlling the value chain from manufacturing to distribution.

Indicators that an industry can support a category king include brand recognition over price competition, the potential for high-profile advertising (like Super Bowl ads), and fragmented supply chains that present opportunities for consolidation.

Infrastructure Ownership as Wealth Preservation

Infrastructure ownership represents generational wealth storage. Assets like rail cars yield steady returns despite lower growth rates compared to other investments.

For those with significant capital ($100 million+), preserving wealth becomes more critical than chasing high returns; infrastructure provides stability against market volatility.

Long-Term Thinking in Wealth Management

Infrastructure investments focus on predictable cash flow, real assets, low risk, and tax efficiency—essential elements for long-term financial health.

Early-stage investors can apply this mindset through municipal bonds or passive real estate investments that generate consistent income without active management.

The Quiet Billionaire's Approach

Wealth creation at this level isn't about traditional methods; it's about understanding future needs and investing accordingly—like Larry Ellison's focus on AI data centers and cloud infrastructure.

These investors shape future trends rather than react to them by identifying bottlenecks within industries that need addressing as demand grows.

By following these principles outlined above, individuals can strategically grow their businesses while ensuring long-term wealth preservation.

Investment Opportunities in Boring Businesses

Invitation to Pitch Business Ideas

The speaker expresses a desire to elevate their business ventures and invites entrepreneurs to share their pitches via email.

They mention plans to visit in 2026, hinting at potential investments in "boring businesses" that they favor.

Entrepreneurs are encouraged to provide details about their business, including location and future goals.

The speaker hopes for engagement with the audience and expresses enthusiasm about possible future interactions.

A suggestion is made for viewers to watch another video related to buying businesses, indicating a broader interest in entrepreneurship.