Saturday, January 21, 2017

Saving v Investing

You save for something. Investment is different. Saving is putting money aside. Investing is putting money to work. One of the reasons we know about the Oxfam stat that just 8 men own the same wealth as half the world is that this wealth is predominantly in public assets. This means they own shares in businesses the public can own. The wealthy of old had land, and assets, they put aside for their use. The wealthy of today mostly invest their wealth. Even those that own private assets we don't know about will mostly invest in their money in things the public use in order to make it grow. There are still heaps of rich people who flaunt their wealth through conspicuous consumption, but it is a stupidity tax. The more you flaunt it, the less you'll have.

Money doesn't grow under beds

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