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You are quite naive. These people don't have to sell their stocks in order to finance something like building a house. They get massive loans using their stocks
by foghornleghorn 6y ago
You are quite naive. These people don't have to sell their stocks in order to finance something like building a house. They get massive loans using their stocks at collateral.
- breakintheweb 6y agoSome of Larry Ellison's emails with his financial advisor became public and talk about doing just this.
- ksec 6y agoIt is common practice for nearly all those wealthy people relying on stocks. What I am interested in is the interest rate they get on those loans.
- foghornleghorn 6y agoIt's actually lower than retail bank interest rates. For example, if they get a huge mortgage, usually it is at least 100 basis points lower. This is because these people are considered extremely low risk.
- jjeaff 6y agoI have heard it is pretty common for them to get 1 or 2% because the banks usually want to win their business.