@Finance_Nerd_ - Finance Nerd
The middle class uses debt to get poorer. The wealthy use debt to get richer. One buys cars, gadgets, and vacations. The other buys assets, never sells, and borrows tax-free for life. Here’s how the rich turn debt into untouchable wealth:
@Finance_Nerd_ - Finance Nerd
Most people use debt to buy things that lose value: • Cars • Gadgets • Vacations You borrow → You pay interest → The asset depreciates → You’re poorer. This is called consumer debt... It bleeds wealth.
@Finance_Nerd_ - Finance Nerd
The Wealthy Flip the Script, They don’t fear debt. They fear selling assets. Why? Because selling triggers capital gains tax, instantly cutting their wealth. Instead, they borrow against their assets.
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Here’s how it works: They own stocks, real estate, or companies worth millions. Instead of selling, they use them as collateral. The bank lends them money at 2–4% interest. No asset sale = no capital gains tax.
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While they pay 2–4% interest on the loan… Their assets are growing at 8–15% per year. Loan money isn’t taxable since it’s not income. Interest is tax-deductible, lowering their taxable income even further. This is why the rich can be in debt on paper while living in luxury.
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Banks compete to lend to the ultra-wealthy because their collateral isn’t a paycheck. It’s: • Businesses • Skyscrapers • Stock portfolios Assets that produce cash flow, whether they work or not.
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Moreover, when assets are pledged as collateral, they’re often shielded from lawsuits and creditors. If someone sues, they can’t touch what’s already locked up, securing a loan.
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The Wealth Glitch: 1. Buy income-producing assets. 2. Never sell them. 3. Borrow against them for living expenses. Let the assets grow. Pass them to heirs tax-efficiently. This is how the rich turn debt into generational wealth.
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In less than 48 hours, Alex Hormozi is launching his new book $100M Money Models. He's teaching the Money Models that built his companies. The tactics that get customers to spend more money. 1,000,000+ people registered. Get your FREE spot NOW: https://shop.acquisition.com/pages/register?via=armaan-singh83
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In 1997, George Soros bet $1 billion that Thailand’s currency would collapse. Weeks later, the Thai baht crashed, crushing the economies of Japan, South Korea, Malaysia, and Indonesia. This is the story of George Soros’ boldest trade (the Asian financial crisis): https://t.co/lobYc5Q2oR
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In the early 1990s, many Asian countries were experiencing unprecedented economic growth. Thailand, Malaysia, Indonesia, and South Korea became known as the Asian Tigers due to their booming export-driven economies. https://t.co/bYLgJJ5nxY
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Cheap foreign capital flooded these countries, leading to overinvestment and risky lending. Many governments pegged their currencies to the U.S. dollar, creating an illusion of stability. https://t.co/hoC7BsvIxy
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Debt levels skyrocketed, and speculative investments in real estate and infrastructure became rampant. While the economies grew on paper, the fundamentals were shaky, creating a perfect storm for financial collapse. https://t.co/P8ClKZ0WPG
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Soros identified the fragility in the region’s financial systems. The Core Problem: Overvalued currencies propped up by unsustainable dollar pegs. Soros realized that if he shorted these currencies, he could make billions when governments inevitably devalued them. https://t.co/mwipmgUAGf
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His target? The Thai baht. In 1997, Soros and other hedge funds began shorting the Thai baht. In case you don't know, shorting is borrowing an asset to sell it at today’s price, betting it can be bought back later at a lower price, pocketing the difference. https://t.co/JIBND8tDcz
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Soros sold enormous quantities of baht. Thailand’s central bank tried to defend its currency by using foreign reserves to buy baht and maintain its value. But the selling pressure was too great, and reserves began depleting rapidly. https://t.co/7ACkEEIwic
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By July 1997, Thailand abandoned the dollar peg and allowed the baht to float freely, resulting in a collapse of over 50% in value. Malaysia, Indonesia, and South Korea's currencies collapsed. Stock markets crashed, foreign capital fled, and millions lost jobs. https://t.co/lphly5kjqd
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The IMF had to step in with massive bailout packages to stabilize the affected countries. Soros didn’t just profit from Thailand, he shorted other currencies in the region, amplifying the crisis. His trades reportedly earned him over $1 billion. https://t.co/8NPrBTVpMq
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Soros faced intense criticism for his role in the crisis: Entire economies suffered. Indonesia saw poverty rates skyrocket as the currency lost over 80% of its value. Leaders in Asia accused Soros of deliberately destabilizing their economies for profit. https://t.co/h9VPnv6JQc
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Malaysian Prime Minister Mahathir Mohamad famously called him a “villain” and a “manipulator.” Soros defended himself, arguing that his trades merely exposed systemic flaws already present in the financial systems. https://t.co/fRXmkQaXNO
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A single family controls the world’s best-selling chocolate, the biggest pet food brands, and thousands of vets. They own 400+ companies and built a $120B empire without you even knowing they exist. This is how the Mars family became capitalism’s most invisible empire: https://t.co/Za5oX6XUFu
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In 1911, Frank C. Mars began making chocolate in his kitchen in Tacoma, Washington. His first hit? The Milky Way bar (1923). It sold so well, it became the best-selling chocolate in America. But candy was just the beginning. https://t.co/xPCGXaC7pm
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From day one, the Mars family avoided the spotlight: • No public shareholders • No press interviews • No public listing Frank’s philosophy: “The consumer is our focus, not Wall Street.” That secrecy became their shield. https://t.co/FDHT5XpdBB
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Most think of Mars as just M&M’s & Snickers. But the company quietly expanded: • Pet care: Pedigree, Whiskas, Royal Canin • Veterinary services: Banfield, VCA Animal Hospitals • Food: Ben’s Original • Drinks: Flavia, Klix Today, pet care is over half of their revenue. https://t.co/j0YPYyGPGX
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Unlike Kellogg’s or Nestlé, Mars keeps its corporate name off the packaging. You buy M&M’s, not “Mars M&M’s.” Pedigree, not “Mars Petcare.” This protects the brand image of each product and keeps the family anonymous. https://t.co/Vos4n5KuWf
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Mars is one of the largest privately held companies in the U.S. All voting shares are held by members of the Mars family. They’ve resisted every attempt to take the company public. Today, six family members are worth $20B+ each. https://t.co/3W3tg6kr6W
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No public shareholders = no quarterly earnings pressure. No CEO photo shoots = no personal scandals in headlines. The Mars family can make decade-long bets without the world watching. https://t.co/qQtZIkffkm
@Finance_Nerd_ - Finance Nerd
Lessons from the Mars playbook • Stay private → control decision-making • Play the long game → think in decades, not quarters • Separate corporate and consumer brand → protect image https://t.co/Uy7QqwUfth