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> that capital is a positive feedback loop This requires a lot of the investment environment that isn't a given. Capital loses its feedback loop if inflation o
by hueving 7y ago
> that capital is a positive feedback loop
This requires a lot of the investment environment that isn't a given. Capital loses its feedback loop if inflation outpaces economic growth or if the quality of investment opportunities declines significantly.
There is no given that just having $10 million dollars means it will be easy to outpace inflation and not end up with less.
- sandstrom 7y agoI think capital would usually be some real asset (building, factory, stocks, etc) and not cash, and if so shouldn't be affected by inflation. No expert though, I may be wrong :)
- K0SM0S 7y agoHaving 10 million dollars as of 2019 and being unable to at least keep up with inflation means making terrible choices, many, many times over.
- jessaustin 7y agoWith that much money you basically have to make a single phone call to Vanguard. With slightly less you have to spend more time on the phone...
- hueving 7y agoSaid everyone during a bull market