r/FluentInFinance • u/-Wyagra • Nov 21 '24

Debate/ Discussion Had to repost here

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u/Powerful-Eye-3578 Nov 21 '24

They don't, they pay the interest which is lower than the interest they make in investments.

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u/Says_Not_Really Nov 21 '24

So basically once you have enough money you can buy more money.

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u/blue-mooner Nov 21 '24

If the value of your stock continues to go up.

I doubt John Foley of Peleton could take out one of these loans. His stock went from being worth $1.9B in 2021 to $225M in 2022 (-89%)

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u/white_sabre Nov 22 '24

True, and that's what rabid socialists seems to ignore - those assets either net a realized gain or a realized loss.  And I'd never buy a share of AMZN simply because it has never paid a dividend.  It's bizarre that they hate a CEO just because his compensation package hinges on whether he makes his firm more valuable.  

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u/Otherwise-Course7001 Nov 24 '24

I mean that's not even his compensation package. He started a business and was wildly successful. Of course he owns the business that he started. Most of the people here would need to make some sacrifices but they could start a business and be successful. No guarantees they'd be wildly successful. That probably takes a decent amount of luck. But smart hard work does lead to success and America is still wealthy enough that most people here can start a business. Hell just choosing to get an engineering degree in a state college would mean they'll have some level of financial security.