[HN Gopher] Billionaires and the Evolution of Overconfidence
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       Billionaires and the Evolution of Overconfidence
        
       Author : onemoresoop
       Score  : 8 points
       Date   : 2024-09-12 19:01 UTC (3 hours ago)
        
 (HTM) web link (www.forkingpaths.co)
 (TXT) w3m dump (www.forkingpaths.co)
        
       | deisteve wrote:
       | ive known a few billionaires and the way they see their wealth is
       | very peculiar.
       | 
       | they view their net worth as something that generates cash flow
       | and will never ever touch that principal. so they end up having
       | to work still even after becoming a billionaire.
       | 
       | ex) a billion dollar in money markets generate a "measly" 4.16
       | million per month which is 138k/day (they are a billionaire but
       | they still have to work to increase cash flow!)
       | 
       | you might put 10~20% of that in stock market but that will only
       | give you a marginal boost in passive income of 200k/day
       | 
       | the "right" amount of billions you need these days is 5 billion
       | USD and up.
       | 
       | 5 billion will give you roughly 1 million USD / day making almost
       | everything within reach
       | 
       | but then you look at guys like Zuck who have 50 billion, and see
       | they are making 10 million USD / day in passive income and for
       | about half of the billionaires that becomes a sort of goal.
       | 
       | This is where the effect described in the article arises, you no
       | longer see yourself as a billionaire but divide yourself in
       | groups like "single digit billionaire in the south" vs "single
       | digit billionaire in the north" and "double digit billionaire"
       | 
       | when you are in the third group, naturally your ambitions wane.
       | $1M / day vs $2M / day dont really make much of a difference vs
       | $10M / day or maybe even $5M / day
       | 
       | after a week you have $7M / week vs $35M / week
       | 
       | and this is where the quality of life drastically shifts from
       | "hard working billionaire" to "weird billionaire"
       | 
       | I realized that many billionaires envy the unknown "triple digit
       | millionaires" with solid cash flow from their business
       | operations.
       | 
       | Cash flow is king at this level. Having a billion dollars just
       | means you won't be able to spend that money at all and live off
       | interests so naturally this pushes them to increase that passive
       | cashflow.
       | 
       | Whats really fascinating is billionaires you dont even know
       | about. They are not in forbes. Their assets are a mystery. Their
       | net worth exceed those of Jeff Bezos and Elon musk and Warren
       | Buffett _combined_.
       | 
       | For instance, one suspected trillionaire roughly pulls in $50
       | billion / year from money market.
       | 
       | thats $136 million dollars PER DAY. I don't think any human would
       | be "normal" at that level.
        
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       (page generated 2024-09-12 23:01 UTC)