Mark Moss explains why wealthy investors never sell their assets. Instead of taking profits, they use assets as collateral to keep compounding returns, avoid taxes, and leverage them to create more wealth. Selling forfeits future gains and kills the ability to use the asset as a tool for generating additional wealth.
The rich never take profits, ever. Most investors think the key to success with investing is to buy something low and then sell it when it's higher. We don't want to sell assets ever. What we do is we use assets as collateral. If I sell my collateral, not only have I lost the long-term compounding of that asset, not only have I lost a lot of money to tax leakage, but I've lost the ability to take that asset and create 5 or 10 more assets with it. And so while most people think, oh yeah, buy low, sell high, they don't even understand the game they're playing and the fact that it's not just trying to make a little bit more fiat, a little bit more dollars in the exchange, but trying to build long-term wealth using the asset as a structural tool.
