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I've three gripes: First, I suspect most mega-rich find investing in all conditions far more enjoyable than anything that money might be able to buy. Second,

I've three gripes: First, I suspect most mega-rich find investing in all conditions far more enjoyable than anything that money might be able to buy. Second, even if they wanted to buy, it takes time to spend billions of dollars. In the mean time, that money will be put to work in some form of financial instrument. Even if it's only sitting in a bank, the bank will make a more lucrative investment with it. Third, it's not like buying an expensive auto collection is wasted money. That money will be used to build the infrastructure of those companies. This has the same shocking benefits of "pure" investment, although it is probably mildly less efficient.

glenra 15y ago
> First, I suspect most mega-rich find investing in all conditions far more enjoyable than anything that money might be able to buy. Um, why would you suspect that? Do you find investing just to be investing more enjoyable than anything money could buy? Why would the mega-rich be any different? > Third, it's not like buying an expensive auto collection is wasted money. That money will be used to build the infrastructure of those companies. What I had in mind was an antique auto collection of the sort featured in reddit a few days ago. Buying a warehouse full of deusenbergs, corvairs, the taxi from seinfeld and a batmobile doesn't really "build the infrastructure of those companies" Anyway, by that logic wouldn't all consumption be beneficial? Going on a round-the-world cruise builds the infrastucture of the cruise company, right? Heck, pay a prostitute enough and she might buy a house with the income - that also "builds infrastructure"...
- jackpirate 15y ago
  Um, why would you suspect that? Do you find investing just to be investing more enjoyable than anything money could buy? Why would the mega-rich be any different? I picked my job because it is very enjoyable to me. I would do it for free if I had too. The job of the mega-rich is to invest. They are under no financial pressure (like say a Mexican immigrant) that forces them to take that job. Anyway, by that logic... I totally agree that it's not the best use of the money, and would definitely rather see it invested wisely. At the same time, it's not like the money's just being burned. It adds a small inefficiency into the investment cycle, but apparently Buffet thinks this inefficiency is not as big as most other people do.

glenra 15y ago

> First, I suspect most mega-rich find investing in all conditions far more enjoyable than anything that money might be able to buy. Um, why would you suspect that? Do you find investing just to be investing more enjoyable than anything money could buy? Why would the mega-rich be any different? > Third, it's not like buying an expensive auto collection is wasted money. That money will be used to build the infrastructure of those companies. What I had in mind was an antique auto collection of the sort featured in reddit a few days ago. Buying a warehouse full of deusenbergs, corvairs, the taxi from seinfeld and a batmobile doesn't really "build the infrastructure of those companies" Anyway, by that logic wouldn't all consumption be beneficial? Going on a round-the-world cruise builds the infrastucture of the cruise company, right? Heck, pay a prostitute enough and she might buy a house with the income - that also "builds infrastructure"...

jackpirate 15y ago
Um, why would you suspect that? Do you find investing just to be investing more enjoyable than anything money could buy? Why would the mega-rich be any different? I picked my job because it is very enjoyable to me. I would do it for free if I had too. The job of the mega-rich is to invest. They are under no financial pressure (like say a Mexican immigrant) that forces them to take that job. Anyway, by that logic... I totally agree that it's not the best use of the money, and would definitely rather see it invested wisely. At the same time, it's not like the money's just being burned. It adds a small inefficiency into the investment cycle, but apparently Buffet thinks this inefficiency is not as big as most other people do.