You were taught the wrong math. The rich use THIS number instead
Summary
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Mark Moss argues that the standard financial metric of Return on Investment (ROI) is insufficient for building wealth, suggesting that the wealthy instead focus on Return on Equity (ROE).
In this video, Mark Moss explains that the conventional financial education taught to most people, which centers on ROI (Return on Investment), keeps individuals from achieving true financial success. He posits that this occurs because the global monetary system is debt-based and inherently inflationary. While average investors track ROI, the top 1% and family offices focus on ROE (Return on Equity), which measures the return on the capital they have trapped as collateral in their assets. Moss introduces the 'Midwit Wealth Curve' to illustrate the shift in mentality from using 'bad debt' (consuming through credit) to using debt strategically to acquire assets that appreciate in value. He provides a step-by-step framework to transition towards this mindset, emphasizing the importance of understanding the three levers of wealth: capital, time, and yield.
Concepts & takeaways
LockedKey Points
LockedWorth watching if: You are interested in understanding alternative perspectives on wealth accumulation, debt, and the mechanics of the current monetary system beyond standard financial advice.
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