alt Hacker NewsAren’t extremely wealthy people that wealthy due to the valuation of their stock? IIRC generally the higher the networth, the higher share is kept in stocks
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They can move their wealth from stocks to gold, for example. Look at the price of gold.
Person A has a net worth of 2B Person A has a loan at 500M backed by their holdings Stocks drop 50%, Net worth is now 1B Person A buys $500m of stocks Market Recovers 100% Person A now has 2B original holdings and 1B gains, $500m owned = 2.5B
Very simple example, and not the only way to do it - but people need to remember net worth being 500B is not 500B in the bank, and at some point the number doesnt matter
Wealthy people are extremely well diversified. Their main risk exposure is to variables that effect the entire market - e.g interest rates.
I suspect $$ is just a number for them. Being able to control more resources is the ultimate game. You gotta have zillions of $$ to join the tournament, though.