Thread by @Mrczar_

Here is How Jeff Bezos Is a Billionaire (Even Without Cash in the Bank)

Jeff Bezos isn’t a billionaire because he has billions in cash.

He’s rich because he owns a huge piece of Amazon.

Let me explain how this works and how the rich buy real things with “fake” money:

Bezos owns millions of Amazon shares.
As Amazon’s value goes up, so does his net worth.

But those shares aren’t cash they’re just numbers on paper. He can’t buy bread with them.

So how does he spend?

Simple; from time to time, he sells a tiny portion of his shares for real money.

That’s what he uses to buy houses, jets, and fund other businesses like Blue Origin.

But that’s not even the smartest part…

Instead of selling, he can walk into a bank and say: “I have $100B worth of Amazon shares. Lend me $500M.”

The bank agrees because his shares are collateral if he doesn’t pay, they take the shares.

It’s like using a house to get a loan.

He takes that $500M loan which came from “paper money” and buys real things like:
Land
Houses
Companies
Jets
Literally Anything tangible at all.

This way he turns water into wine and just use paper wealth that’s not real to get something that is.

But here’s where the game gets wild…
He doesn’t even buy things in his own name, this way he doesn’t pay tax as much as a worker
The house is in written as a Company expense.
The jet?
His car?
By law you don’t pay tax on a company expense:

So the Billioniare game is

- Own valuable assets
- Borrow against those assets
- Use the loan to grow the business and buy real stuff
- then put the stuff in your company’s name to enjoy it without paying the kind of tax a civil servant pays