3 ms·

Its why the rich always get richer too. They have the capital to buy into inevitable downturns and ride the bull run into orders of magnitude increases of wealt

Its why the rich always get richer too. They have the capital to buy into inevitable downturns and ride the bull run into orders of magnitude increases of wealth. Everyone else just loses their job and has to pay for rent and food out of savings and loses their generational wealth in the process.

WalterBright 2y ago
The money the rich people have to buy into the dips has dipped right along with it.
- kjkjadksj 2y ago
  Its still money to buy
  - WalterBright 2y ago
    If there was nobody to buy on the dips, the dips would go all the way to zero.
refurb 2y ago
> Its why the rich always get richer too. But even the non-rich acquire more wealth over time as well.
onetwothree4 2y ago
I think rich get richer because of a bunch of reasons but not really because of “buying when there is blood on the streets” or “timing the market” if you prefer. Reasons include: * Children inherit wealth and knowledge of how to build wealth * The children are doing this rather than trying to leetcode to get their first job (or rack up debt to get qualified for it etc.) * Connections * Compounding (despite corrections) * Political influcence * Can afford to hire tax/law people to avoid tax * Tax law favours the rich. You pay no tax on a billion in capital gains if you never sell and if that yields you 50m you pay tax on that but let’s say it is half so 25m that is 2.5% of the wealth but if it goes up 75m over the same period that is tax free so you paid 20% tax on the increase in net worth. Compare that to a worker. And this is without doing any tax avoidance! * To avoid tax at all in the previous example get the corp to buy back shares instead of paying dividends then live off borrowed money.
- chasd00 2y ago
  > * Children inherit wealth and knowledge of how to build wealth that knowledge is so important. When i was a kid all I was told over and over was "get a good job in an office so you don't have to work like i do". This was coming from blue collar oil and ranch hands in West Texas so that's what i did and it's worked out pretty well for me. However, I'm teaching my kids how to build wealth and that a well-paying job is an income stream to assist with that but not the whole answer.

WalterBright 2y ago

The money the rich people have to buy into the dips has dipped right along with it.

kjkjadksj 2y ago
Its still money to buy
- WalterBright 2y ago
  If there was nobody to buy on the dips, the dips would go all the way to zero.

refurb 2y ago

> Its why the rich always get richer too. But even the non-rich acquire more wealth over time as well.

onetwothree4 2y ago

I think rich get richer because of a bunch of reasons but not really because of “buying when there is blood on the streets” or “timing the market” if you prefer. Reasons include: * Children inherit wealth and knowledge of how to build wealth * The children are doing this rather than trying to leetcode to get their first job (or rack up debt to get qualified for it etc.) * Connections * Compounding (despite corrections) * Political influcence * Can afford to hire tax/law people to avoid tax * Tax law favours the rich. You pay no tax on a billion in capital gains if you never sell and if that yields you 50m you pay tax on that but let’s say it is half so 25m that is 2.5% of the wealth but if it goes up 75m over the same period that is tax free so you paid 20% tax on the increase in net worth. Compare that to a worker. And this is without doing any tax avoidance! * To avoid tax at all in the previous example get the corp to buy back shares instead of paying dividends then live off borrowed money.

chasd00 2y ago
> * Children inherit wealth and knowledge of how to build wealth that knowledge is so important. When i was a kid all I was told over and over was "get a good job in an office so you don't have to work like i do". This was coming from blue collar oil and ranch hands in West Texas so that's what i did and it's worked out pretty well for me. However, I'm teaching my kids how to build wealth and that a well-paying job is an income stream to assist with that but not the whole answer.