4 ms·

There are no very expensive vehicles or dining choices when you’re worth tens of billions. It’s literally meaningless, like it would be for me if all my meals f

There are no very expensive vehicles or dining choices when you’re worth tens of billions. It’s literally meaningless, like it would be for me if all my meals for a year cost me 1% of a penny.

marnett 6y ago
What about a catered party for 500 with staff and celebrity chef? The wealthy can throw lavish events that are not necessarily a drop in the bucket, especially if common.
- tgsovlerkhgsel 6y ago
  Let's say this thing costs $200 per person, so $100k per party. Let's say he does this every day (or throws a 3.5x as lavish party twice a week), that's $36.5M per year. He can do this for 10 years and it will still literally be a rounding error in his wealth.
  - gamblor956 6y ago
    Of his current wealth on paper, yes. But almost all of Elon's wealth is in the form of his stock holdings, and stocks fluctuate in price. Moreover, his cash is almost all leveraged from his stock, and if the price collapses again, he could be wiped out by the margin call.
    - codeisawesome 6y ago
      I want to read a book (or a few!) full of these dynamics of wealth - what it means to be paper wealthy, what leveraging that can do for your lifestyle, and why people live in fear of the margin call. Can I please ask you for any recommendations?
    - texasbigdata 6y ago
      Or....he structured it as "let me borrow 60% of X, and here as some shares worth X as collateral.". Aka synthetically manufactured selling shared without actually doing it in order to fund his lifestyle. Depending on the advance rate (the 60% in this case), someone will do that deal. To take it to the absurd. If Elon wanted to fund his $35M daily party habit in the comment above, and he said to a bank "here is 3 billion in stock as pledged collateral which you can sell when the value goes to $500M but there's no recourse. Cool? Cool. " You would do that deal. So the margin call concept does not seem realistic.
      - Marsymars 6y ago
        A $35m daily party habit would cause problems to Elon's wealth, among other things.
anoncareer0212 6y ago
Actually verifiably not true, he had a margin call just last year, the stock hit $180.
- quaquaqua1 6y ago
  Yet again people downvoting the truth.
- ryanwaggoner 6y ago
  How is that related to what I said? Did he have a margin call because his dining choices are too expensive, or because he's borrowed hundreds of millions of dollars against a volatile stock? Also, since we're talking about what's "verifiably true", do you have any proof that he even had a margin call?

There are no very expensive vehicles or dining choices when you’re worth tens of billions. It’s literally meaningless, like it would be for me if all my meals for a year cost me 1% of a penny.

marnett 6y ago

What about a catered party for 500 with staff and celebrity chef? The wealthy can throw lavish events that are not necessarily a drop in the bucket, especially if common.

tgsovlerkhgsel 6y ago
Let's say this thing costs $200 per person, so $100k per party. Let's say he does this every day (or throws a 3.5x as lavish party twice a week), that's $36.5M per year. He can do this for 10 years and it will still literally be a rounding error in his wealth.
- gamblor956 6y ago
  Of his current wealth on paper, yes. But almost all of Elon's wealth is in the form of his stock holdings, and stocks fluctuate in price. Moreover, his cash is almost all leveraged from his stock, and if the price collapses again, he could be wiped out by the margin call.
  - codeisawesome 6y ago
    I want to read a book (or a few!) full of these dynamics of wealth - what it means to be paper wealthy, what leveraging that can do for your lifestyle, and why people live in fear of the margin call. Can I please ask you for any recommendations?
  - texasbigdata 6y ago
    Or....he structured it as "let me borrow 60% of X, and here as some shares worth X as collateral.". Aka synthetically manufactured selling shared without actually doing it in order to fund his lifestyle. Depending on the advance rate (the 60% in this case), someone will do that deal. To take it to the absurd. If Elon wanted to fund his $35M daily party habit in the comment above, and he said to a bank "here is 3 billion in stock as pledged collateral which you can sell when the value goes to $500M but there's no recourse. Cool? Cool. " You would do that deal. So the margin call concept does not seem realistic.
    - Marsymars 6y ago
      A $35m daily party habit would cause problems to Elon's wealth, among other things.

anoncareer0212 6y ago

Actually verifiably not true, he had a margin call just last year, the stock hit $180.

quaquaqua1 6y ago
Yet again people downvoting the truth.
ryanwaggoner 6y ago
How is that related to what I said? Did he have a margin call because his dining choices are too expensive, or because he's borrowed hundreds of millions of dollars against a volatile stock? Also, since we're talking about what's "verifiably true", do you have any proof that he even had a margin call?