Why do the rich keep getting richer?

The ultimate truth of this world is that it's hard for people to earn money

but easy for money to make money

Why do the rich keep getting richer?

It's simple. Let me give you an example

The entry threshold for financial freedom is 30 million yuan

NVIDIA, 42.50x return

If you invest your entire net worth to make 30 million

You need to put in at least 705,800 yuan

And hold firmly for over 5 years since early 2019

If your total net worth is only 705,800 yuan

After suffering through these 5 years day and night

You definitely wouldn't get the 42.50x return

Because this is 100% of your net worth

If you're fully leveraged, you'd lose even more sleep

But for truly wealthy people

Maybe this 785,000 yuan is just 5% of their total assets

Calculating at 5% allocation

Their initial net worth would be 15.7 million

This is 17.5 million in investable cash, not illiquid assets

With just 5% position

I believe anyone could ignore stock price fluctuations

Take Bitcoin for example

Today's peak broke $95,000

If you whimsically bought 45 BTC at $3,625 in early 2019

It would cost 1.18 million RMB

If this was your entire net worth as mentioned

You'd never hold until today's $95,000

But if you're worth hundreds of millions

This amount is nothing, just 1%

I believe everyone in my circle could easily hold until new highs

That's all 🐷🐷🐷