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> Who "just has money" and doesn't control capital? 1. The vast majority of middle class wealth is locked up in (non-investment) housing. That money provides a

> Who "just has money" and doesn't control capital? 1. The vast majority of middle class wealth is locked up in (non-investment) housing. That money provides a roof and access to quality education, but in almost all cases, it's not being efficiently deployed as capital. 2. Whatever remaining money that is deployed as capital, is not done so in a way that implies control over their chosen investments. Think "majority shareholder" vs. "just another investor". That's the difference between "controlling capital" and merely having a bit of skin in the game.

nordsieck 8y ago
> The vast majority of middle class wealth is locked up in (non-investment) housing. There are literally 0 people I know who think owning a house is not an investment. If you're trying to make a distinction between income generating assets and assets that don't generate income, you're just digging yourself into a hole - housing doesn't generate income, but it does save cost - namely rental cost. In that sense, it is a better investment because the return is less risky. > 2. Whatever remaining money that is deployed as capital, is not done so in a way that implies control over their chosen investments. Think "majority shareholder" vs. "just another investor". That's the difference between "controlling capital" and merely having a bit of skin in the game. That's well and good, but it's just as true for most people above the 10% line as for those below. You have to get to some truly lofty heights before you find the activist investors.
- gshubert17 8y ago
  > There are literally 0 people I know who think owning a house is not an investment. I thought of my house as a "use asset", like a car. It's nice when the house appreciates. But I couldn't sell it and "cash out" if I had to use the proceeds to buy another house. But, as you said, it saved on rental costs.
  - Rotten194 8y ago
    Owning a house is an intergenerational investment -- your kids can sell it and make a tidy unearned profit on what you spent, or live in it and pocket that amount of money in not having to pay for another living arrangement. It contributes to the high IGE of the US the author was talking about.
- throwawayjava 8y ago
  > You have to get to some truly lofty heights before you find the activist investors. That was exactly the point the GP was trying to make...

nordsieck 8y ago

> The vast majority of middle class wealth is locked up in (non-investment) housing. There are literally 0 people I know who think owning a house is not an investment. If you're trying to make a distinction between income generating assets and assets that don't generate income, you're just digging yourself into a hole - housing doesn't generate income, but it does save cost - namely rental cost. In that sense, it is a better investment because the return is less risky. > 2. Whatever remaining money that is deployed as capital, is not done so in a way that implies control over their chosen investments. Think "majority shareholder" vs. "just another investor". That's the difference between "controlling capital" and merely having a bit of skin in the game. That's well and good, but it's just as true for most people above the 10% line as for those below. You have to get to some truly lofty heights before you find the activist investors.

gshubert17 8y ago
> There are literally 0 people I know who think owning a house is not an investment. I thought of my house as a "use asset", like a car. It's nice when the house appreciates. But I couldn't sell it and "cash out" if I had to use the proceeds to buy another house. But, as you said, it saved on rental costs.
- Rotten194 8y ago
  Owning a house is an intergenerational investment -- your kids can sell it and make a tidy unearned profit on what you spent, or live in it and pocket that amount of money in not having to pay for another living arrangement. It contributes to the high IGE of the US the author was talking about.
throwawayjava 8y ago
> You have to get to some truly lofty heights before you find the activist investors. That was exactly the point the GP was trying to make...