How many people do you think have both of these traits?
1 Access to enough capital to execute on that plan and expect it to be positive-EV taking into account not only opportunity cost, but risk.
2 Regularly calculates the ROI on different business categories they interact with, to look for business opportunities.
Seems to me like this number is very small, most people doing this are pretty busy making loads of money, and then their kids don’t execute the same strategy so it doesn’t snowball intergenerationally. And the rest of the post explains why, structurally, we should expect this class to have shrunk quite a bit in relative terms over the last several decades.
I agree that under naive microeconomic assumptions what you predict would happen, and I wouldn’t be seeing what I’m seeing.
How many people do you think have both of these traits?
1 Access to enough capital to execute on that plan and expect it to be positive-EV taking into account not only opportunity cost, but risk.
2 Regularly calculates the ROI on different business categories they interact with, to look for business opportunities.
Seems to me like this number is very small, most people doing this are pretty busy making loads of money, and then their kids don’t execute the same strategy so it doesn’t snowball intergenerationally. And the rest of the post explains why, structurally, we should expect this class to have shrunk quite a bit in relative terms over the last several decades.
I agree that under naive microeconomic assumptions what you predict would happen, and I wouldn’t be seeing what I’m seeing.