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He is in debt, in US dollars, to buy cash flow generating real assets like rental property. He is effectively shorting the US dollar, inflation corrodes the deb
by Mo3 3y ago
He is in debt, in US dollars, to buy cash flow generating real assets like rental property. He is effectively shorting the US dollar, inflation corrodes the debt value and at the same time boosting the asset value.
- chiefalchemist 3y agoRight. It's good debt. It's the type of debt rich people do to get richer. He's got assest that more than likely appreciate greater than the interest on the debt. It's not like he's run up $1B in high interest credit card debt buying needless shite at TJ Maxx. This is one of the key differences between rich and poor. Rich use debt to their advantage. Poor use debt to stay poor, lose ground.