Re: Warren Buffet on Death & Taxes, and other things.
Buffet makes a great point about the markets in his newsletter - that they don't "create" wealth. They just allow it to change hands.
[ QUOTE ]
With unimportant
exceptions... the most that owners in aggregate can earn between now and Judgment Day is what their businesses in aggregate earn. True, by buying and selling that is clever or lucky, investor A may take more than his share of the pie at the expense of investor B. And, yes, all investors feel richer when stocks soar. But an owner can exit only by
having someone take his place. If one investor sells high, another must buy high. For owners as a whole, there is simply no magic – no shower of money from outer space – that will enable them to extract wealth from their companies beyond that created by the companies themselves.
[/ QUOTE ]
He goes on to say the hands brokers are most anxious to transfer money to - are their own.
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