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« Back-Stabbing from the Grave | Main | Psychopaths Could be Best Financial Traders »

September 23, 2005

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It is because the wealthiest Americans (Bill Gates, Warren Buffett, etc.) have the majority of their wealth in paper. Not in cash. And paper wealth is a lot harder to cash in than an annual salary.

For example: Bill Gates has 100,000,000,000 shares of Microsoft in his personal net worth. Times the current price ($30 or $40, whatever) means this portion of his net worth is $30 billion-ish.

Could Bill Gates liquidate 100 billion shares of Microsoft in a day-- considering that the average is 66 million shares that trade? He has 100,000,000,000 shares, but on average only 66,000,000 are bought each day. Are you crazy? Know what it would do to the stock market?

That is the difference between paper worth and cash worth. And what confuses so many Americans.

yes, as i hv said on numerous occasions, too many of us r more concerned w looking prosperous to actually achieve prosperity. there is an over emphasis on immediate gratification & an unwillingness to engage in any self sacrifice or self denial. credit was developed to enable weak minded people to spend money they havn't earned yet.

how many people believe thats a pathway toward wealth building?

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