Mark Moss argues that keeping debt makes sense when your assets grow faster than your borrowing costs. You avoid capital gains taxes and let money compound. Only pay down debt if your asset growth drops below your interest rate.
And so we never sell the asset, so it continues to compound. I never pay the tax. And then the next question people ask me, Robert, is, well, that's great, Mark, but when would I pay off the debt? My answer is never. The only time you'd ever pay off the debt is if the growth rate was below the cost of the debt. But because we're leveraging digital markets, physical markets, and credit markets, it should always outperform a credit market, just like real estate does.
