The Secrets of Billionaires.

• Author: HOLTZMAN, HENRY
• Position: Brief Article - Review

How to Be A Billionaire: Proven Strategies from the Titans of Wealth

Martin S. Fridson

John Wiley & Sons; New York, NY 2000; 310 pages; $24.95.

One of the important keys to becoming a billionaire is to forget all the common and uncommon wisdom you learned in business and b-schools. At least that's what author Fridson believes. For example, you can forget all that "wisdom" about competition. The ability to compete may get you into the game, but once you're a player the source of mega-wealth is restraining trade. Long-term stock investments may yield a comfortable retirement, but the big bucks come from acquiring a position in a company and then rattling management's cage.

Despite first appearances, the philosophy underpinning the book isn't really based on an updated 1980s concept of nice guys finishing last. It's founded on the premise that there may not be much time in your life to be a nice guy if you want to finish first. It's a fine distinction but an important one, encouraging philanthropy after you become a billionaire.

Fridson has organized his book around a dozen basic business concepts. He goes on to show how 14 of the wealthiest people in America (from John D. Rockefeller to Bill Gates) applied these ideas to become billionaires. The concepts, themselves, are the author's brainchild. They include:

* Pursue the Money in Ideas

* Rules are Breakable

* Copying Pays Better Than Innovating

* Keep on Growing

* Hold on to Your Equity

* Hard Work is Essential

* Use Financial Leverage

* Keep the Back Door Open

* Make Mistakes Then Learn From Them

* Frugality Pays

* Enjoy the Pursuit

* Develop a Thick Skin

The author takes a contrarian's position about how people can earn billions. If investment is not the path to megabucks, neither is coming up with the "big idea" and marketing it. He claims that Warren Buffett isn't really an investor, but the head of a company (Berkshire Hathaway) that uncovers other potentially good companies, buys a controlling interest in them, and guides them into becoming great companies. This increases the value of his stocks when he sells them and generates piles of money. This seems more like a distinction without a difference. An investment banker always makes more money than a day trader does.

Fridson also believes that people who invent a better mousetrap usually have to settle for living on the cheese. He cites the example of Ted Judah, who in the 19th century planned a railroad to span America. He was called...