The wealthy profit from a deliberate knowledge gap between rich and poor investors. Markets redistribute money from impatient people chasing headlines to patient ones who understand what they're doing, a dynamic Benjamin Graham described decades ago.
The knowledge gap between the wealthy and the poor, how wide is it?
It's very wide, but not just wide, it's also covered. The wealthy likes it like that because don't forget, it's a market. Yeah, if you don't lose, I don't make. Yeah, I'm trying to collect money from you, that's it. Okay, none of us can make money, make, produce, we cannot. So So ideally what we do is that we collect money. If I offer you a service, I collect money from you. I collect money from— so I collect money. I don't make money. Only the government can make money. So if you're also in the stock market, what we are doing is that we're collecting money. So Graham would say that the market is a redistribution place from the impatient to the patient. So if I'm in the market and I know that, okay, I know what I'm doing, you think you know what I'm doing, so it's like chess. I like that you think you know what I'm doing. Because that puts you exactly where I want you.
It's a trap.
Yeah. You see, the average person follows headlines. Oh, this person just acquired this company. This person just did this. And then that's the excitement. You think it's a pointer for you to do, for you to get in. But the question I'm asking is that, what did this person see? What's the rationale behind this decision? You don't know. People just like to be an investor. They don't really know whether it's going to make them wealthy or not. Once they are just an investor, a landlord, they are comfortable, they are good, because that makes them feel like the wealthy. Oh, this person is an investor, I'm also an investor, they are good.
So you said that the knowledge gap between the rich and the poor is not just wide, it's a secret. Yeah, it is. And somehow it plays better in the market for you to have the assumption that you know, you know. Exactly. And they like it like that. That is— they don't just like— that's their business. Their business is the ignorance of the people. Exactly.
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