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That makes sense. But even if you’re one of the world’s richest people and decide for some reason to retire just on the savings of a FAANG engineer, you still e
by synu 4y ago
That makes sense. But even if you’re one of the world’s richest people and decide for some reason to retire just on the savings of a FAANG engineer, you still eventually die and your assets must be sold or passed on to others. Someone is going to cash out.
I just don’t understand how once you reach a certain level of wealth you are functionally locked out of ever accessing it except on paper. Someone must have kept their wealth or cashed out (one way or the other) at some point. It feels like, if true, no business would ever exist more than 30 years but clearly there are many businesses that have.
- kasey_junk 4y agoThe shares get dispersed to the broader family, children, grandchildren etc. Typically at those levels of wealth there is a “family office” which is just a word for “hedge fund” that’s only clients are the family. Like any hedge fund they can use those shares as parts of lots deals to diversify, manage risk and pull out cash. Sometimes it’s even simpler, dividends can provide a significant cash flow for large shareholders. In any case, it would be extremely strange for someone to get very wealthy and then hold most of their portfolio in cash.
- synu 4y agoAgreed it would be strange, more wondering about how “making a list of richest people based on stocks is disingenuous because they will never be able to get that valuation if they sold it on the market”
- georgeplusplus 4y ago