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> 5. Real-estate is where wealth is parked, not where wealth is generated. If you have a billion dollars, your problem is keeping it not growing it. I disagree
by Jeremy1026 2y ago
> 5. Real-estate is where wealth is parked, not where wealth is generated. If you have a billion dollars, your problem is keeping it not growing it.
I disagree with this one. That billion dollars may be parked in real estate, but when you're ready to liquidate it you're (statistically speaking) more than likely to be pulling out more than the billion you put in.
- brudgers 2y agoIf you liquidate a billion dollars you have a problem. Where do you park a billion dollars? If you need to liquidate a billion dollars, it is not wealth.
- Jeremy1026 2y agoIf you are simply looking to put it somewhere, likely government bonds. Hedge yourself against inflation and call it a day.
- brudgers 2y agoBonds mature. In a few years you have to figure out where to park the billions. Land persists. In a hundred years the land will still be there growing grapes or grazing cattle. If you are hedging inflation, it’s not wealth. Don’t misunderstand me, I get where you are coming from. It is not the world of wealth. On the timeline of civilization capitalism is a recent innovation. Wealth is as old as civilization. Thinking about wealth with capitalist assumptions obscures wealth’s mechanisms.
- Jeremy1026 2y agoYou park them back into more bonds, more accurately, your "money guy" buys more bonds with them. Once you're into _illions on hand, you no longer have a direct hand on your money.
- brudgers 2y agoI doubt the Windsors do bonds. But I could be wrong.