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"How do you benefit from someone else spending your money for you?" 1. Economy of scale 2. I can get 5% on my own but they can get 8%. If he invests my money f
by forrestthewoods 11y ago
"How do you benefit from someone else spending your money for you?"
1. Economy of scale
2. I can get 5% on my own but they can get 8%. If he invests my money for me for 1.5% then we both prosper.
So there's at least 2 ways. There are more. Yes it's more complicated, but you asked and I answered.
- sillygeese 11y ago> 1. Economy of scale 2. I can get 5% on my own but they can get 8%. If he invests my money for me for 1.5% then we both prosper. First of all, "he" is not interested in your well-being, so he might as well get a good deal with a total price of X, but mark down X + Y as the expenses, and then pocket the difference. And second, free competition drives quality up and prices down, so you'll get a good deal that way too. There's plenty of "economy of scale" in millions of people seeking out the best deal on whatever.