1 Billionaire's Shocking Plan to Create 6 Brand-New American States

Tim Draper is a billionaire venture capitalist who has made a living making big investments, but his proposal to split California into six states is his biggest move yet.

Mar 1, 2014 at 1:39PM

The state motto of California is "Eureka: I have found it" -- one billionaire is pushing for it to instead read, "Eureka: I have found them." 


Tim Draper is a venture capitalist with an impressive resume that includes an undergraduate degree from Stanford and an MBA from Harvard. Yet his most ambitious proposal ever is his recently announced initiative to split California from one state into six, known simply as Six Californias. No, really. Draper has begun campaigning for the division of America's most populous state and hopes it will be presented to its citizens to vote on in November.

Who he is
Tim Draper calls himself a "free-spirited venture capitalist," also known as "The Riskmaster." Both his father and grandfather founded their own venture capital firms, and he is the founding partner of Draper Fisher Jurvetson (DFJ), his own firm that began almost 30 years ago in 1985.

What he wants
Draper has concluded California is "ungovernable," as it currently stands, and is seeking to amend the state constitution and in turn split California into six distinct and separate states, Jefferson, North California, Central California, Silicon Valley, West California, and South California.

Source: California Legislative Analyst's Office.

Draper noted one of the reasons behind the proposal was "with six Californias, people will be closer to their state governments, and states can get a refresh," and it would in turn allow for more localized governments and legislation that could better meet the needs of the citizens across the state.

However, many have questioned the proposed boundaries, as there would be a wide disparity in both population and personal income, as well as questions over taxes, water consumption, education, and other municipal areas.

Source: California Legislative Analyst's Office.

Yet the petition has received approval from Debra Brown, the California Secretary of State, to begin the circulation of the proposal to voters in California. If Draper is able to collect signatures from 807,615 registered voters in California -- which would be just 8% of the total votes cast for governor -- by July 18th, it will in turn be placed on the ballot before all Californians in the November election.

What comes next
The Legislative Analyst's Office notes, "discussions of splitting California into two or more states continued after statehood and have emerged periodically ever since," and the Financial Times reports more than 200 proposals to split the state have circulated since California became one in 1850. 

In addition, even if the signatures are gathered, it is placed on the ballot, and ultimately approved by the voters in California, the proposition would also have to be approved by Congress, which many have suggested is unlikely.

In fact in 1859, three-quarters of California voters approved a split of the state along the Tehachapi Mountains -- including Los Angeles County and San Diego County, and others -- but the move was never implemented because Congress did not act on the separation plan.

Although it seems unlikely California will be split into six separate states like Draper has proposed, he provides a powerful example of someone willing to question the establishment and propose a unique and revolutionary solution. This should be a reminder to every one of the quote from the late Steve Jobs, "innovation distinguishes between a leader and a follower." Clearly Draper is acting as a leader. 

The investing leader
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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

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That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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