Quote:
Originally Posted by CliffFletcher
Thomas Piketty offers some pretty convincing evidence that the bigger the pile of capital you have the more likely and faster it is to grow. From the review of his book "Capital in the Twenty-First Century" in the Harvard Business Review:
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Yes I've read his book. Certainly having capital is a huge factor in growing capital and I don't disagree.
All I'm saying is that private investors are putting that capital at risk every single day, and there are many cases of these families and entrepreneurs ultimately going broke. In fact, most families of great wealth lose it all by the end of the third generation due to mismanaging risk, huge leverage, concentration, taxes, divorce, over-consumption, bad investments, fees and costs, ego.
You are making a huge and IMO erroneous assumption that private capital just grows every month.
Also the comparison of US endowment performance to private wealth is IMO a terrible one for a multitude of reasons.