[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y ] [Search | Free Show | Home]

how do billionaires avoid inflation /biz/? also, it may be irrelevant

This is a blue board which means that it's for everybody (Safe For Work content only). If you see any adult content, please report it.

Thread replies: 11
Thread images: 3

File: 4-1.jpg (173KB, 1060x1127px) Image search: [Google]
4-1.jpg
173KB, 1060x1127px
how do billionaires avoid inflation /biz/? also, it may be irrelevant but is a billionaire starting a foundation only some tax avoidance trick? pic unrelated.
>>
>>983248
>how do billionaires avoid inflation /biz/?

They purchase assets.
>>
>>983248
Dude are you retarded? Inflation is good, you got 1 billion dollars inflation is gonna make that bank worht more next year man. Inflation like 2% you get 2 million in da bank next year + interest you be fucking bowling
>>
I don't think you understand how inflation works.

No, billionaires cannot avoid inflation. No one can. They just have the ability to hedge against it, or at least have their assets in monetary vehicles that track inflation. eg TIPs
>>
>>983248
>>983252
To add to this, due to their immense wealth they can afford very good financial advisers and essentially diversify to the maximum possible extent.

i.e Buy homes that are expected to appreciate or at least not lower in price all over the world, memes funds, dozens of ETFs, etc.
>>
>>983248
Investments, generally. And that doesn't avoid it entirely.
As far as foundations/charities go, you can pay X dollars for taxes, or reduce your burden by giving to charity instead.
Most rich people pick charity over taxes.
>>
>>983248
No one avoids inflation. But you can work with it. Many asset classes rise with inflation.
but the general thing is always having a place to park your money that earns and is liquid with plenty of interested counterparties.

Take Buffetts purchase of large issues of the dike reconstruction bond for the netherlands. triple insured high yield short term bond. held a lot of cash in that waiting for teh crash. this thing had like a 15% yield according to the article. butt blasted even high inflation.

His number 1 rule is don't lose money.
>>
how does the stock market reflect a hyperinflationary environment? like in post WWII germany, people were paying for bread with literal pounds worth of bills.

will the stock prices move in tandem with inflationary pressures?
>>
>>983844
Well, stocks during hyperinflation go exponential, I don't know if they actually increase in inflation adjusted value.
>>
File: weimar.png (42KB, 551x313px) Image search: [Google]
weimar.png
42KB, 551x313px
>>985225
http://www.businessinsider.com/heres-what-happened-to-stocks-during-the-german-hyperinflation-2011-11?IR=T
>>
>>985225
>>985229

thanks for the reply bro. so i guess gold isn't all that impressive. supposing stocks move with the general trend of hyperinflation, it would be an acceptable choice as a hedge. as opposed to keeping your money under a mattress.
Thread posts: 11
Thread images: 3


[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y] [Search | Top | Home]

I'm aware that Imgur.com will stop allowing adult images since 15th of May. I'm taking actions to backup as much data as possible.
Read more on this topic here - https://archived.moe/talk/thread/1694/


If you need a post removed click on it's [Report] button and follow the instruction.
DMCA Content Takedown via dmca.com
All images are hosted on imgur.com.
If you like this website please support us by donating with Bitcoins at 16mKtbZiwW52BLkibtCr8jUg2KVUMTxVQ5
All trademarks and copyrights on this page are owned by their respective parties.
Images uploaded are the responsibility of the Poster. Comments are owned by the Poster.
This is a 4chan archive - all of the content originated from that site.
This means that RandomArchive shows their content, archived.
If you need information for a Poster - contact them.