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If it was that risky, they wouldn’t have these assets. People have investments because they understand cash alone won’t grow. Someone like Jeff Bezos has most o
by noahtallen 5y ago
If it was that risky, they wouldn’t have these assets. People have investments because they understand cash alone won’t grow. Someone like Jeff Bezos has most of his wealth in Amazon stock partly because he perceives Amazon stock as better than cash. (Which is a very good analysis. Even a huge crash in stock value would still outperform cash by a huge margin over time.)
If these assets were very risky or likely to cause a portfolio to never grow, the rich would absolutely not be utilizing them as much.
- lexapro 5y agoYes, in the long term cash is much riskier than stocks.
- crate_barre 5y agoIt’s also just a simple strategy to avoid the tax burden until necessary.