Posts tagged “truth”
Between 1951 and 1954, when the capital gains rate was 25 percent and marginal rates on dividends reached 91 percent in extreme cases, I sold securities and did pretty well. In the years from 1956 to 1969, the top marginal rate fell modestly, but was still a lofty 70 percent — and the tax rate on capital gains inched up to 27.5 percent. I was managing funds for investors then. Never did anyone mention taxes as a reason to forgo an investment opportunity that I offered.
Under those burdensome rates, moreover, both employment and the gross domestic product (a measure of the nation’s economic output) increased at a rapid clip. The middle class and the rich alike gained ground.
So let’s forget about the rich and ultrarich going on strike and stuffing their ample funds under their mattresses if — gasp — capital gains rates and ordinary income rates are increased. The ultrarich, including me, will forever pursue investment opportunities.
And, wow, do we have plenty to invest. The Forbes 400, the wealthiest individuals in America, hit a new group record for wealth this year: $1.7 trillion. That’s more than five times the $300 billion total in 1992. In recent years, my gang has been leaving the middle class in the dust.
I had a hard time deciding on the pull quotes from this article. The whole thing is worth a read. Buffett’s on fire.
Michael Lopp / Rands in Repose: "The future is invented by the people who don't give a shit about the past." →
Your success is delicious. Others look at your success and think, “Well, duh, it’s so obvious what they did there - anyone can do that” and, frustratingly so, they’re right. Your success has given others a blueprint for what success looks like, and while, yes, the devil’s in the details, you have performed a lot of initial legwork for your competition in the process of becoming successful.
More bad news via metaphors. Your enticing success has your competition chasing you, and that means that, by definition, that they need to run harder and faster than you so they can catch up. Yes, many potential competitors are going to bungle the execution and vanish before they pose a legitimate threat but there’s a chance someone will catch up, and when they do, what’s their velocity? Faster than yours.
The reward for winning is the perception that you’ve won. In your celebration of your awesomeness, you are no longer focused on the finish line, you now lack a clear next goal, and while you sit there comfortably monetizing eyeballs, you’re becoming strategically dull. You’ve forgotten that someone is coming to eat you and if you want until you can see them coming, you’re too late.
Stay Hungry. Stay Foolish.
via Daring Fireball.