Re:Buffett: Wealth, Estate Taxes, and the Ovarian Lottery
by fnid on Wednesday November 11, 2009 @08:39PM
(#936875)
You would be surprised how hard it would be to lose billions of dollars. That kind of wealth is usually locked up pretty tight such that access is only available to some trickle of dollars coming out of the interest, trust funds, etc...
If a trustee loses everything then the next year, they have access to another annuity distribution.
Re:Buffett: Wealth, Estate Taxes, and the Ovarian Lottery
by chasingsparks on Wednesday November 11, 2009 @08:57PM
(#936913)
Which is to say, they are well diversified. With increasing diversity and massive assets it becomes more and more difficult it to earn exceptional rewards. Does most paths of asset returns exceed inflation and familial growth?
This is actually an interesting experiment. I'll run a crude test this weekend bootstrapping against the S&P500 to see how likely it is for wealth to propagate X generations into the future and report on Monday.
Re:Buffett: Wealth, Estate Taxes, and the Ovarian Lottery
by fnid on Wednesday November 11, 2009 @09:54PM
(#936990)
That is interesting. Warren has a bet out against someone that a portfolio of hedge funds will not outperform the total market returns after accounting for taxes, management fees, etc.
as diversity approaches 100%, performance approaches market returns.
The question is, how long can extreme wealth remain extreme wealth? Considering the wealth gap is increasing, I would suggest forever unless there is a "market correction" like socialism or something.
Re:Buffett: Wealth, Estate Taxes, and the Ovarian Lottery
by chasingsparks on Wednesday November 11, 2009 @10:10PM
(#937008)
If that was the case, you would expect there to be a few hundred-billionaires out there.
Re:Buffett: Wealth, Estate Taxes, and the Ovarian Lottery
by Retric on Thursday November 12, 2009 @09:01AM
(#937746)
There are a few hundred billionaires out there. 5 billion barely get's you into the top 100.
Re:Buffett: Wealth, Estate Taxes, and the Ovarian Lottery
by chasingsparks on Saturday November 14, 2009 @10:21PM
(#942560)
Hundred-billionaire as in an individual with greater than 100 billion; not a few hundred people with greater than 1 billion.
Re:Buffett: Wealth, Estate Taxes, and the Ovarian Lottery
by steveplace on Wednesday November 11, 2009 @08:56PM
(#936912)
But then those funds are managed in a family office and provide liquidity/investments/etc. and that capital on its own can provide value.
However, I do agree with you that it might be a robust guard against the inherited wealth class gaming the system. I would prefer to intervene when such injustice is committed, but admit that that is not always easy to do. The argument you use for curtailing that risk is similar to the argument I would make in favor of term-limits.