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He did it through offering a _money management_ service to large institutions and wealthy individuals. That money management service includes, amongst other th
by CityOfThrowaway 2y ago
He did it through offering a _money management_ service to large institutions and wealthy individuals.
That money management service includes, amongst other things, picking stocks. But that's the tactical "what". The value-added element is that he preserved and grew that wealth instead. It turns out that is hard to do, and is indeed a positive sum service to customers. They get to relax _and_ make money. Great outcome.
- cipheredStones 2y agoYes, he was capturing value for his clients, and getting paid some of that. That isn't the same thing as doing something that increases the amount of wealth in the economy, which was my point.
- ipaddr 2y agoThe entire point of the stock market is to get capital to companies to allow them to do things that may increase wealth (could be local, state, country or globally). Successfully doing this means the companies he supported did well.
- quesera 2y ago> The entire point of the stock market is to get capital to companies Only if the shares are newly-issued, though. Usually your counterparty is just someone with different cash flow needs, or who disagrees with you about the future. No benefit accrues to the company.