Controversial Post Alert...
There seems to be a massive misunderstanding about "billionaires" in the minds of many.
Namely that they are hoarding wealth away from the poor. I get that it would seem like that at a distance but lets explore a few things...
Over 90% billionaires on the Sunday Times Rich List are self-made. They started a business from scratch, proved that they had created something of value that others want and they grew it decade upon decade.
Along the way, they go to wealthy individuals or fund managers to get additional money to scale up and serve more customers. Each time they grow they hire people and invest in innovation. They raise more money by selling a stake in their business. The investors are wealthy people or fund managers who are already rich.
If someone raised £150M for a 10% share of their company they are technically "worth" over a billion. Their wealth isnt hoarded away though, its the value of their shares in their company at the most recent market valuation. Theoretically, if they sold all of their shares at this moment, the stock value would actually plummet and many people would lose their jobs.
Occasionally billionaires do have a massive liquidity event and they do actually have $1B+ in cash. When this happens, the most common investments they make are:
1. Government bonds - IE: lending the government money at low-interest rates.
2. Private equity funds - IE: investing in the growth of other businesses.
3. Property - IE: housing or commercial space for people and businesses live or work from.
4. Equities - Investing in a portfolio of well-known companies that society relies upon for food, energy, technology, banking, etc.
In most cases, billionaires make their money selling goods and services to people who have money, getting investment from people who have money and then when they have money they invest that money into stuff that impacts many people in society.
... Do I think theres a massive problem with poverty? Yes. Do I think we need better healthcare for all? yes. Should we invest more in education, police, infrastructure, etc? Yes. Could some of that money come from Billionaires? Absolutely it could...
BUT are billionaires greedy, money hoarding people who are the problem in society - no, thats not true in most cases. If we create a toxic environment where the government and society blame the rich and hate the rich, it wont end well. What we need is a society that gets buy-in from all stakeholders to create a society thats working for more people... billionaires also want to a successful, affluent society because then there are more people to buy fancy hairdryers, airfares, clothing, technology, jewelry and real estate, etc.
Via Daniel Priestley
There seems to be a massive misunderstanding about "billionaires" in the minds of many.
Namely that they are hoarding wealth away from the poor. I get that it would seem like that at a distance but lets explore a few things...
Over 90% billionaires on the Sunday Times Rich List are self-made. They started a business from scratch, proved that they had created something of value that others want and they grew it decade upon decade.
Along the way, they go to wealthy individuals or fund managers to get additional money to scale up and serve more customers. Each time they grow they hire people and invest in innovation. They raise more money by selling a stake in their business. The investors are wealthy people or fund managers who are already rich.
If someone raised £150M for a 10% share of their company they are technically "worth" over a billion. Their wealth isnt hoarded away though, its the value of their shares in their company at the most recent market valuation. Theoretically, if they sold all of their shares at this moment, the stock value would actually plummet and many people would lose their jobs.
Occasionally billionaires do have a massive liquidity event and they do actually have $1B+ in cash. When this happens, the most common investments they make are:
1. Government bonds - IE: lending the government money at low-interest rates.
2. Private equity funds - IE: investing in the growth of other businesses.
3. Property - IE: housing or commercial space for people and businesses live or work from.
4. Equities - Investing in a portfolio of well-known companies that society relies upon for food, energy, technology, banking, etc.
In most cases, billionaires make their money selling goods and services to people who have money, getting investment from people who have money and then when they have money they invest that money into stuff that impacts many people in society.
... Do I think theres a massive problem with poverty? Yes. Do I think we need better healthcare for all? yes. Should we invest more in education, police, infrastructure, etc? Yes. Could some of that money come from Billionaires? Absolutely it could...
BUT are billionaires greedy, money hoarding people who are the problem in society - no, thats not true in most cases. If we create a toxic environment where the government and society blame the rich and hate the rich, it wont end well. What we need is a society that gets buy-in from all stakeholders to create a society thats working for more people... billionaires also want to a successful, affluent society because then there are more people to buy fancy hairdryers, airfares, clothing, technology, jewelry and real estate, etc.
Via Daniel Priestley
Controversial Post Alert...
There seems to be a massive misunderstanding about "billionaires" in the minds of many.
Namely that they are hoarding wealth away from the poor. I get that it would seem like that at a distance but let's explore a few things...
Over 90% billionaires on the Sunday Times Rich List are self-made. They started a business from scratch, proved that they had created something of value that others want and they grew it decade upon decade.
Along the way, they go to wealthy individuals or fund managers to get additional money to scale up and serve more customers. Each time they grow they hire people and invest in innovation. They raise more money by selling a stake in their business. The investors are wealthy people or fund managers who are already rich.
If someone raised £150M for a 10% share of their company they are technically "worth" over a billion. Their wealth isn't hoarded away though, it's the value of their shares in their company at the most recent market valuation. Theoretically, if they sold all of their shares at this moment, the stock value would actually plummet and many people would lose their jobs.
Occasionally billionaires do have a massive liquidity event and they do actually have $1B+ in cash. When this happens, the most common investments they make are:
1. Government bonds - IE: lending the government money at low-interest rates.
2. Private equity funds - IE: investing in the growth of other businesses.
3. Property - IE: housing or commercial space for people and businesses live or work from.
4. Equities - Investing in a portfolio of well-known companies that society relies upon for food, energy, technology, banking, etc.
In most cases, billionaires make their money selling goods and services to people who have money, getting investment from people who have money and then when they have money they invest that money into stuff that impacts many people in society.
... Do I think there's a massive problem with poverty? Yes. Do I think we need better healthcare for all? yes. Should we invest more in education, police, infrastructure, etc? Yes. Could some of that money come from Billionaires? Absolutely it could...
BUT are billionaires greedy, money hoarding people who are the problem in society - no, that's not true in most cases. If we create a toxic environment where the government and society blame the rich and hate the rich, it won't end well. What we need is a society that gets buy-in from all stakeholders to create a society that's working for more people... billionaires also want to a successful, affluent society because then there are more people to buy fancy hairdryers, airfares, clothing, technology, jewelry and real estate, etc.
Via Daniel Priestley
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