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.
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