No, they don’t. Liquid assets don’t increase in value. If they had $1 in cash seven years ago, it would be worth less than that today due to inflation.
When you’re a billionaire, most of your net worth comes from businesses assets you own (and can borrow against without having to claim the loans as income), not liquid assets.
Wealth is not the same as liquid assets
Liquid assets are a type of wealth. For many people, liquid assets make up the biggest part of their wealth.
No, they don’t. Liquid assets don’t increase in value. If they had $1 in cash seven years ago, it would be worth less than that today due to inflation.
Stocks are liquid assets. They can increase in value.
T-bills are also liquid assets. They can also increase in value.
Savings accounts and money market accounts are also liquid assets. They can also increase in value.
When you’re a billionaire, most of your net worth comes from businesses you own, not liquid assets.
Billionaires are far more likely to own part of a business than 100% of a business. And if you own stocks, then you too own part of a business.
FTFY