Stocks – The Great “Wealth” Equalizer? Written by Lance Roberts | Aug, 4, 2017
Just recently, the New York Post a very interesting article entitled “Millennials should start taking stocks seriously.” While I am sure the author is well-intentioned, it is a very misguided article in its assumptions.
The author jumps right in with both feet:
“Many millennials are missing the chance to accumulate significant assets.”
There are so many problems with that statement alone its tough to find a starting point.
First, the stock market is not, and never has been, the “solution” to building wealth. If you look around the world, there might be a very small handful that have actually built a fortune by investing alone. That is the exception, not the rule.
The real wealth builder, even for guys like Ray Dalio, Larry Fink, Warren Buffett and others, was not from just investing their own money in the financial markets but by building businesses that invested “other peoples money” in the financial markets from which they collected heavy fees and compensation over time.
In America, the great “wealth equalizer” is, and always has been, entrepreneurship. But, unfortunately, according to a recent Federal Reserve study, since the financial crisis business equity ownership has declined markedly.
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