3 ms·

>Let's assume the asset appreciates at an annual rate of 8 percent Quite a lot of value creation going on. Good on them!

WorkerBee28474 2y ago
That's a normal amount for the S&P 500. The return on a privately held company is likely higher.
PaulDavisThe1st 2y ago
Value extraction is the predominant mode when financial instruments (including stocks) are involved, not value creation.
- tome 2y ago
  Seems unlikely. Value extraction would lead to big dividends but declining share price.
t0mas88 2y ago
What value creation? This could just be a simple Vanguard S&P 500 ETF like everyone else's.
- IncreasePosts 2y ago
  Might as well take out the biggest margin loan possible and invest in the S&P 500 if that is the case.
  - chii 2y ago
    That's exactly what a lot retirement funds would do. And it is a good way to invest.
- brigadier132 2y ago
  > This could just be a simple Vanguard S&P 500 ETF like everyone else's. The demand for shares in a company incentivizes entrepreneurs to create companies so that they can then sell the shares. So even passive investing contributes to innovation.
mrkeen 2y ago
Indeed, someone with $10B who increased that to $10.8B over a year earned 80M. That's like $40K/hr if they take no sick days or time off to go yachting. Their labour must be super important.
- maronato 2y ago
  8% of 10B is 800M, which comes to $91K every hour of the year. The average American makes $29.81 per working hour. https://www.indeed.com/career-advice/pay-salary/average-hourly-wage-in-us https://www.indeed.com/career-advice/pay-salary/average-hour...
- chii 2y ago
  > must be super important. of course it is important. They spent $10B dollars on plant and equipment, and/or R&D, and it generates more value over time (which translates to the $80[0]M earned). Why would "labour" only be valuable if it was the person _doing_ the work?

3 ms·

>Let's assume the asset appreciates at an annual rate of 8 percent Quite a lot of value creation going on. Good on them!

by fordacious 2y ago

WorkerBee28474 2y ago
That's a normal amount for the S&P 500. The return on a privately held company is likely higher.
PaulDavisThe1st 2y ago
Value extraction is the predominant mode when financial instruments (including stocks) are involved, not value creation.
- tome 2y ago
  Seems unlikely. Value extraction would lead to big dividends but declining share price.
t0mas88 2y ago
What value creation? This could just be a simple Vanguard S&P 500 ETF like everyone else's.
- IncreasePosts 2y ago
  Might as well take out the biggest margin loan possible and invest in the S&P 500 if that is the case.
  - chii 2y ago
    That's exactly what a lot retirement funds would do. And it is a good way to invest.
- brigadier132 2y ago
  > This could just be a simple Vanguard S&P 500 ETF like everyone else's. The demand for shares in a company incentivizes entrepreneurs to create companies so that they can then sell the shares. So even passive investing contributes to innovation.
mrkeen 2y ago
Indeed, someone with $10B who increased that to $10.8B over a year earned 80M. That's like $40K/hr if they take no sick days or time off to go yachting. Their labour must be super important.
- maronato 2y ago
  8% of 10B is 800M, which comes to $91K every hour of the year. The average American makes $29.81 per working hour. https://www.indeed.com/career-advice/pay-salary/average-hourly-wage-in-us https://www.indeed.com/career-advice/pay-salary/average-hour...
- chii 2y ago
  > must be super important. of course it is important. They spent $10B dollars on plant and equipment, and/or R&D, and it generates more value over time (which translates to the $80[0]M earned). Why would "labour" only be valuable if it was the person _doing_ the work?