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#DezervWealthSummit | 🚨 "Not having debt is like buying a car with two accelerators and no brakes and no seatbelts… Fixed income is very important if you want to earn the returns of equity over a long period of time, the asset class, which allows you to earn that... show more

Moneycontrol

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Dave Ramsey was asked a simple hypothetical. Would you take a billion dollars at 0% interest for 10 years? He said no. Not because the math was bad. Because he does not borrow money. Period. No exceptions. And that is the problem. There is a difference between bad debt and good debt. Bad debt costs you money. Good debt makes you money. A loan covered by tenants is not a liability. It is a wealth building machine that someone else is paying off for you. Refusing all debt does not protect you. It just keeps you from building anything. The question is never whether to use debt. The question is whether the debt is covered.

Dave Ramsey was asked a simple hypothetical. Would you take a billion dollars at 0% interest for 10 years? He said no. Not because the math was bad. Because he does not borrow money. Period. No exceptions. And that is the problem. There is a difference between bad debt and good debt. Bad debt costs you money. Good debt makes you money. A loan covered by tenants is not a liability. It is a wealth building machine that someone else is paying off for you. Refusing all debt does not protect you. It just keeps you from building anything. The question is never whether to use debt. The question is whether the debt is covered.

Ken McElroy

19,697 views • 2 months ago

The credit system functions like a circulatory system that delivers nutrients and buying power to various parts of the economy. A system is considered healthy when borrowed money is used to generate productivity, which in turn produces income. However, it becomes unhealthy when debts and debt service costs increase relative to income. This debt service acts like plaque in the circulatory system, squeezing out spending. Because one individual's debt represents another individual's asset, with holders expecting a good return, increased selling leads to supply and demand issues. When combined with high debt service, it ultimately impairs the system's mechanics. Ed Elson

The credit system functions like a circulatory system that delivers nutrients and buying power to various parts of the economy. A system is considered healthy when borrowed money is used to generate productivity, which in turn produces income. However, it becomes unhealthy when debts and debt service costs increase relative to income. This debt service acts like plaque in the circulatory system, squeezing out spending. Because one individual's debt represents another individual's asset, with holders expecting a good return, increased selling leads to supply and demand issues. When combined with high debt service, it ultimately impairs the system's mechanics. Ed Elson

Ray Dalio

107,727 views • 2 months ago

Most people use debt to get poor. They buy a house, build equity over decades, and stop there. The wealth is locked in a primary residence, doing nothing. The ones who get rich do something different. They take that same principle, the same velocity, and apply it to an asset that produces cash flow. A rental property. A business. Something that generates income while the debt pays itself down. The bank already knows this. Every loan they write is backed by collateral. They are not lending against your income. They are lending against the asset. And if you default, they take the asset and recover the debt. That is the whole game. Find an asset a lender would take back. Acquire it. Let the cash flow service the debt. Own it free and clear on the other side. Good debt makes you richer. Most people just never learned the difference.

Most people use debt to get poor. They buy a house, build equity over decades, and stop there. The wealth is locked in a primary residence, doing nothing. The ones who get rich do something different. They take that same principle, the same velocity, and apply it to an asset that produces cash flow. A rental property. A business. Something that generates income while the debt pays itself down. The bank already knows this. Every loan they write is backed by collateral. They are not lending against your income. They are lending against the asset. And if you default, they take the asset and recover the debt. That is the whole game. Find an asset a lender would take back. Acquire it. Let the cash flow service the debt. Own it free and clear on the other side. Good debt makes you richer. Most people just never learned the difference.

Ken McElroy

44,838 views • 2 months ago

#MFSummitWithMC | 🗣️ "The transformation of India from a nation of savers to a nation of investors is not just an economic or financial trend—it is a social and cultural transformation." 🇮🇳 In conversation with Moneycontrol Managing Editor Nalin Mehta (Nalin Mehta ) at the Moneycontrol Mutual Fund Summit 2026 in Mumbai, Navneet Munot, CEO, HDFC Mutual Fund, highlighted: * 📈 India is in the early stages of the financialisation of savings. * 💰 Disciplined investing is replacing traditional retirement dependence. * 🏗️ Real assets like gold, real estate and infrastructure are also getting financialised through new investment products. #MutualFundSummit #MoneycontrolMutualFundSummit #HDFCMutualFund #JioBlackRock #AxisMutualFund #MutualFundSummit2026 HDFC Mutual Fund JioBlackRock Mutual Fund

#MFSummitWithMC | 🗣️ "The transformation of India from a nation of savers to a nation of investors is not just an economic or financial trend—it is a social and cultural transformation." 🇮🇳 In conversation with Moneycontrol Managing Editor Nalin Mehta (Nalin Mehta ) at the Moneycontrol Mutual Fund Summit 2026 in Mumbai, Navneet Munot, CEO, HDFC Mutual Fund, highlighted: * 📈 India is in the early stages of the financialisation of savings. * 💰 Disciplined investing is replacing traditional retirement dependence. * 🏗️ Real assets like gold, real estate and infrastructure are also getting financialised through new investment products. #MutualFundSummit #MoneycontrolMutualFundSummit #HDFCMutualFund #JioBlackRock #AxisMutualFund #MutualFundSummit2026 HDFC Mutual Fund JioBlackRock Mutual Fund

Moneycontrol

11,157 views • 2 months ago

Probably the best take I have heard on why there is so much fear around software exposure in private equity and credit because of AI From David Sacks "Historically we only had two good exits for software businesses. One was IPO. The other was M&A. Then these big private equity shops came along and gave us a third potential exit. You would sell to them and then they would raise the capital based on one third equity and two third debt. So it was debt financed buyouts. It is something that has been around in the non technology part of the economy for a long time but was a relatively new entrant in the world of technology. And the reason for that is if you have debt financed a purchase, you need to have very stable cash flows. Because if you miss and you cant pay your interest on the debt, you will lose all your equity because the debt holders will foreclose. It was belief for a long time that software did have predictable cash flows, at least for the mature businesses."

Probably the best take I have heard on why there is so much fear around software exposure in private equity and credit because of AI From David Sacks "Historically we only had two good exits for software businesses. One was IPO. The other was M&A. Then these big private equity shops came along and gave us a third potential exit. You would sell to them and then they would raise the capital based on one third equity and two third debt. So it was debt financed buyouts. It is something that has been around in the non technology part of the economy for a long time but was a relatively new entrant in the world of technology. And the reason for that is if you have debt financed a purchase, you need to have very stable cash flows. Because if you miss and you cant pay your interest on the debt, you will lose all your equity because the debt holders will foreclose. It was belief for a long time that software did have predictable cash flows, at least for the mature businesses."

Boring_Business

404,103 views • 4 months ago

Taking a loan has never been easier. There is almost no friction between wanting something and borrowing to pay for it. The problem is that income is limited, while the list of things we want is endless. And often, it isn’t even the purchase we want as much as the momentary thrill of buying it. We are taught how to earn and save, but learning how to spend is just as important. When an impulse purchase becomes an EMI, you are committing future income even before it hits your account. The excitement of spending fades in days, but the debt stays for years. Borrowing to invest in a home, education, or business makes sense. Borrowing for lifestyle consumption locks you into a loop that leaves no breathing room when an emergency hits. In this video, Zero1 by Zerodha looks at why household debt in India is rising, how to assess whether your debt is manageable, and practical ways to pay it down. Congratulations to Prateek Singh, Swati Sharma, and the team on crossing 800,000 subscribers.

Taking a loan has never been easier. There is almost no friction between wanting something and borrowing to pay for it. The problem is that income is limited, while the list of things we want is endless. And often, it isn’t even the purchase we want as much as the momentary thrill of buying it. We are taught how to earn and save, but learning how to spend is just as important. When an impulse purchase becomes an EMI, you are committing future income even before it hits your account. The excitement of spending fades in days, but the debt stays for years. Borrowing to invest in a home, education, or business makes sense. Borrowing for lifestyle consumption locks you into a loop that leaves no breathing room when an emergency hits. In this video, Zero1 by Zerodha looks at why household debt in India is rising, how to assess whether your debt is manageable, and practical ways to pay it down. Congratulations to Prateek Singh, Swati Sharma, and the team on crossing 800,000 subscribers.

Nithin Kamath

120,439 views • 25 days ago

#MFSummitWithMC | 🗣️ "India's annual household savings will soon surpass those of the United States. Yet, only 6% of the country's $14 trillion household balance sheet is invested in equities. Channelising a larger share of these savings into equity markets can transform wealth creation and fuel India's next phase of growth." 📊 In conversation with Moneycontrol Managing Editor Nalin Mehta (Nalin Mehta ) at the Moneycontrol Mutual Fund Summit 2026 in Mumbai, Navneet Munot, CEO, HDFC Mutual Fund, said India's rising household savings present a once-in-a-generation opportunity to deepen equity participation and strengthen long-term capital formation. #MutualFundSummit #MoneycontrolMutualFundSummit #HDFCMutualFund #JioBlackRock #AxisMutualFund #MutualFundSummit2026 HDFC Mutual Fund JioBlackRock Mutual Fund Axis Mutual Fund

#MFSummitWithMC | 🗣️ "India's annual household savings will soon surpass those of the United States. Yet, only 6% of the country's $14 trillion household balance sheet is invested in equities. Channelising a larger share of these savings into equity markets can transform wealth creation and fuel India's next phase of growth." 📊 In conversation with Moneycontrol Managing Editor Nalin Mehta (Nalin Mehta ) at the Moneycontrol Mutual Fund Summit 2026 in Mumbai, Navneet Munot, CEO, HDFC Mutual Fund, said India's rising household savings present a once-in-a-generation opportunity to deepen equity participation and strengthen long-term capital formation. #MutualFundSummit #MoneycontrolMutualFundSummit #HDFCMutualFund #JioBlackRock #AxisMutualFund #MutualFundSummit2026 HDFC Mutual Fund JioBlackRock Mutual Fund Axis Mutual Fund

Moneycontrol

14,231 views • 2 months ago

"The West Coast is definitely eating the East Coast." Jeremy Giffon on where the next great financial firms will come from: "Venture capital has created the biggest businesses in the world, and private equity has not. The largest and most important finance firms come out of a culture of leveraged buyout. The core idea behind it is like using debt and financial engineering to make a lot of money. What does it look like when the largest financial firms in the world, their founding action was seed investing? It's equity driven, it's power law. It's hugely optimistic. Venture capital is this tiny little asset class that has produced all the most important things in the world. It is this civilizational technology which is you're willing to give young people millions of dollars to try a very speculative idea with basically no retribution or downside if it doesn't work.

"The West Coast is definitely eating the East Coast." Jeremy Giffon on where the next great financial firms will come from: "Venture capital has created the biggest businesses in the world, and private equity has not. The largest and most important finance firms come out of a culture of leveraged buyout. The core idea behind it is like using debt and financial engineering to make a lot of money. What does it look like when the largest financial firms in the world, their founding action was seed investing? It's equity driven, it's power law. It's hugely optimistic. Venture capital is this tiny little asset class that has produced all the most important things in the world. It is this civilizational technology which is you're willing to give young people millions of dollars to try a very speculative idea with basically no retribution or downside if it doesn't work.

Patrick OShaughnessy

277,640 views • 1 month ago

Chamath's CDS Bet: Outlining Major Corporate Debt Default Risks "With all of the tariffs, the one thing that we haven't sufficiently talked about is there is a tremendous amount of corporate debt that supports these businesses today." "And you would say, 'Well, if long-term rates go down, there's no real risk.'" "But the tariff picture actually impacts revenues." "And the problem with that is that there's a lot of companies that have debt covenants tied to revenue and EBITDA." "And so this is what I spoke about at the beginning of January, which is, the one risk that is uncontrollable, is what happens to corporate debt and could we see a wave of defaults and a wave of action?" On our 2025 predictions show in January, Chamath Palihapitiya picked credit default swaps as his best-performing asset this year, calling it a long-shot with major upside: " I would be long CDS. I'm buying insurance using credit default swaps. I think that there is a small chance of some volatility next year. I hope it doesn't happen. I hope that this trade loses money. But if it hits, it will be the best-performing asset of 2025." Fast-forward to April: " It has hit. For every billion dollars of risk you would've put on, would have cost you ~$1M, and that million dollars would've made you ~$7M in about three months." "Why is this important? The CDS actually represents the structural risk in the United States corporate economy." "So when you see these spreads blowing out, this is actually a very important warning sign." "This is what was the canary in the coal mine for the Great Financial Crisis." "The tariff picture and the recession picture will get played out in this chart." "And I think it's something that folks can and should probably pay tremendous attention to."

Chamath's CDS Bet: Outlining Major Corporate Debt Default Risks "With all of the tariffs, the one thing that we haven't sufficiently talked about is there is a tremendous amount of corporate debt that supports these businesses today." "And you would say, 'Well, if long-term rates go down, there's no real risk.'" "But the tariff picture actually impacts revenues." "And the problem with that is that there's a lot of companies that have debt covenants tied to revenue and EBITDA." "And so this is what I spoke about at the beginning of January, which is, the one risk that is uncontrollable, is what happens to corporate debt and could we see a wave of defaults and a wave of action?" On our 2025 predictions show in January, Chamath Palihapitiya picked credit default swaps as his best-performing asset this year, calling it a long-shot with major upside: " I would be long CDS. I'm buying insurance using credit default swaps. I think that there is a small chance of some volatility next year. I hope it doesn't happen. I hope that this trade loses money. But if it hits, it will be the best-performing asset of 2025." Fast-forward to April: " It has hit. For every billion dollars of risk you would've put on, would have cost you ~$1M, and that million dollars would've made you ~$7M in about three months." "Why is this important? The CDS actually represents the structural risk in the United States corporate economy." "So when you see these spreads blowing out, this is actually a very important warning sign." "This is what was the canary in the coal mine for the Great Financial Crisis." "The tariff picture and the recession picture will get played out in this chart." "And I think it's something that folks can and should probably pay tremendous attention to."

The All-In Podcast

1,102,601 views • 1 year ago

MidChains (MidChains) CEO Basil Al Askari said that “at least one” sovereign wealth fund is accumulating spot Bitcoin while the price is down, with another potentially set to begin buying in the coming weeks. “It sends a very clear signal to let’s say other institutions that are maybe sitting on the sidelines and looking at these larger funds as kind of leaders of the asset class.” #CHAINREACTION

MidChains (MidChains) CEO Basil Al Askari said that “at least one” sovereign wealth fund is accumulating spot Bitcoin while the price is down, with another potentially set to begin buying in the coming weeks. “It sends a very clear signal to let’s say other institutions that are maybe sitting on the sidelines and looking at these larger funds as kind of leaders of the asset class.” #CHAINREACTION

Cointelegraph

86,427 views • 2 months ago

Warren Buffett: "When I say a very good business, I mean something that you can expect to earn high returns on capital over a long period of time." "I could put huge amounts of money into government bonds and get $20-30-40 billion a year in terms of payments from them. So a good business is one that earns a lot more — and has prospects of continuing to earn a lot more — than the returns on essentially risk-less investments."

Warren Buffett: "When I say a very good business, I mean something that you can expect to earn high returns on capital over a long period of time." "I could put huge amounts of money into government bonds and get $20-30-40 billion a year in terms of payments from them. So a good business is one that earns a lot more — and has prospects of continuing to earn a lot more — than the returns on essentially risk-less investments."

Kevin Carpenter

82,288 views • 1 month ago

Warren Buffett: "When I say a very good business, I mean something that you can expect to earn high returns on capital over a long period of time." "I can put huge amounts of money into government bonds and get $20-30-40 billion a year, in terms of payments from them. So a good business is one that earns — and has prospects of continuing to earn — a lot more than the returns on essentially risk-less investments." (CNBC || 2026)

Warren Buffett: "When I say a very good business, I mean something that you can expect to earn high returns on capital over a long period of time." "I can put huge amounts of money into government bonds and get $20-30-40 billion a year, in terms of payments from them. So a good business is one that earns — and has prospects of continuing to earn — a lot more than the returns on essentially risk-less investments." (CNBC || 2026)

Kevin Carpenter

28,002 views • 20 days ago

EVERY MAN OWES THE SAVER'S DEBT, AND WILL NEVER BE SAVED FROM DEBT EXCEPT HE SAVES AS A MATTER OF DEBT.... Saving is not about quantity as it is about character. It is that character God is watching out for to release increase upon you! Take a listen, and if this resonates with you, share with someone you love. #JesusReigns

EVERY MAN OWES THE SAVER'S DEBT, AND WILL NEVER BE SAVED FROM DEBT EXCEPT HE SAVES AS A MATTER OF DEBT.... Saving is not about quantity as it is about character. It is that character God is watching out for to release increase upon you! Take a listen, and if this resonates with you, share with someone you love. #JesusReigns

Isaiah Macwealth

58,853 views • 2 months ago

Warren Buffett says he could collect 20 to 40 billion dollars a year from government bonds without taking any risk, and that is the number he holds AI spending against: "AI companies, you're putting out huge amounts of money. And I can put huge amounts of money into government bonds and get, you know, 20 or 30 or 40 billion dollars a year in terms of payments from them." "So a good business is one that earns a lot more than, and has prospects of continuing to earn a lot more than the returns on essentially riskless investments, which you could define as Treasuries." "But if you take something like American Express, you know, most of the banks earn 13, 14% on capital." "But it's so different that it earns 30% plus on capital, and it does not incur more risk in doing so than the banks that earn 13 or 14%." "And the trick in life is to find, I mean in investing, is to find businesses that are going to earn high returns on capital for an extended period of time." "A long period of time gets to be very important because those doubles later on are very big numbers." That is a hurdle rate, and you can hold the next AI capex announcement against it the same day you read it. His second condition is the harder one. Earning high returns for an extended period means somebody has to show the returns will hold, and almost every number that would show it for AI is published by the company doing the spending. When the entity being measured also runs the measurement, what you are reading is marketing. Buffett has been able to check American Express against decades of audited filings. There is no equivalent for an AI model yet, and building it is the whole job. - Warren Buffett, chairman of Berkshire Hathaway, on CNBC (CNBC).

Warren Buffett says he could collect 20 to 40 billion dollars a year from government bonds without taking any risk, and that is the number he holds AI spending against: "AI companies, you're putting out huge amounts of money. And I can put huge amounts of money into government bonds and get, you know, 20 or 30 or 40 billion dollars a year in terms of payments from them." "So a good business is one that earns a lot more than, and has prospects of continuing to earn a lot more than the returns on essentially riskless investments, which you could define as Treasuries." "But if you take something like American Express, you know, most of the banks earn 13, 14% on capital." "But it's so different that it earns 30% plus on capital, and it does not incur more risk in doing so than the banks that earn 13 or 14%." "And the trick in life is to find, I mean in investing, is to find businesses that are going to earn high returns on capital for an extended period of time." "A long period of time gets to be very important because those doubles later on are very big numbers." That is a hurdle rate, and you can hold the next AI capex announcement against it the same day you read it. His second condition is the harder one. Earning high returns for an extended period means somebody has to show the returns will hold, and almost every number that would show it for AI is published by the company doing the spending. When the entity being measured also runs the measurement, what you are reading is marketing. Buffett has been able to check American Express against decades of audited filings. There is no equivalent for an AI model yet, and building it is the whole job. - Warren Buffett, chairman of Berkshire Hathaway, on CNBC (CNBC).

Karl Mehta

317,150 views • 1 month ago

Dave Ramsey says "good debt" is a myth and reveals the exact 2 things you need to reach your first $5,000,000 in net worth Hala Taha: "You believe there's no such thing as good debt?" Dave Ramsey: "100% of the time, debt equals risk. Little debt, little risk. Big debt, big risk." "People only talk about debt as if there's one possible outcome, and it's a positive outcome. We've done detailed research, and 100% of the foreclosures occur on a home with a mortgage." "If you wanna destabilize your retirement, go into retirement with a mortgage. Think about it, because you're 80 years old now and you got a house payment. This is not a plan." "We found basically two things that cause people to get their first $1,000,000 to $5,000,000 in net worth." "It was a well-funded retirement plan taking advantage of good mutual funds and compound interest... and a paid-off $500,000, $600,000, $800,000, $900,000 house."

Dave Ramsey says "good debt" is a myth and reveals the exact 2 things you need to reach your first $5,000,000 in net worth Hala Taha: "You believe there's no such thing as good debt?" Dave Ramsey: "100% of the time, debt equals risk. Little debt, little risk. Big debt, big risk." "People only talk about debt as if there's one possible outcome, and it's a positive outcome. We've done detailed research, and 100% of the foreclosures occur on a home with a mortgage." "If you wanna destabilize your retirement, go into retirement with a mortgage. Think about it, because you're 80 years old now and you got a house payment. This is not a plan." "We found basically two things that cause people to get their first $1,000,000 to $5,000,000 in net worth." "It was a well-funded retirement plan taking advantage of good mutual funds and compound interest... and a paid-off $500,000, $600,000, $800,000, $900,000 house."

Hala Taha

341,499 views • 3 months ago

Indian equities give zero returns half the time, and FDs quietly destroy your wealth through inflation. So, where should you actually invest? If you want to build wealth without losing sleep, chasing last year's top-performing asset is a losing game. In our latest podcast, Saurabh and Ishaan break down a smarter approach: the simple Multi-Asset Portfolio. By balancing Indian Equities, Global Equities, Gold, Debt, and Cash, this framework has historically delivered ~11.3% long-term returns with just one-fourth the volatility of the Nifty 50. It is the ultimate strategy to smooth out the bumps and stay invested for decades. Crush risk and safely compound your wealth with a free customized financial plan: Watch the full breakdown in the comments below!

Indian equities give zero returns half the time, and FDs quietly destroy your wealth through inflation. So, where should you actually invest? If you want to build wealth without losing sleep, chasing last year's top-performing asset is a losing game. In our latest podcast, Saurabh and Ishaan break down a smarter approach: the simple Multi-Asset Portfolio. By balancing Indian Equities, Global Equities, Gold, Debt, and Cash, this framework has historically delivered ~11.3% long-term returns with just one-fourth the volatility of the Nifty 50. It is the ultimate strategy to smooth out the bumps and stay invested for decades. Crush risk and safely compound your wealth with a free customized financial plan: Watch the full breakdown in the comments below!

Marcellus Investment Managers

26,500 views • 2 months ago

I want to explain in a nutshell why the US debt situation is at a very dangerous inflection point. Put simply, the US is now spending 40% more than we’re taking in. This accumulation of debt service payments has spiraled over decades and is starting to squeeze away buying power. And if you run the numbers, there’s an imbalance between how much debt has to be sold, who the buyers are, and the likelihood of it all being bought. Together, these two influences are why I worry about suffering an economic heart attack in the near future.

I want to explain in a nutshell why the US debt situation is at a very dangerous inflection point. Put simply, the US is now spending 40% more than we’re taking in. This accumulation of debt service payments has spiraled over decades and is starting to squeeze away buying power. And if you run the numbers, there’s an imbalance between how much debt has to be sold, who the buyers are, and the likelihood of it all being bought. Together, these two influences are why I worry about suffering an economic heart attack in the near future.

Ray Dalio

433,004 views • 11 months ago

Dave Ramsey says all debt is stupid. Credit cards, student loans, car payments, borrowing against your house. All of it. He says your income is your number one wealth-building tool, and the second you hand it to someone else, you give up your economic future. He is half right. On credit cards, I agree completely. You are paying 28 to 30% on that. But notice what he never mentions. Cost of capital. That is the whole game, and he skips it. High-priced student debt, fine. But my own loans were at 3%, and they were the only way I got into college. I paid them back over time. That was a good investment, not a stupid one. Where he is dead wrong is real estate. Debt on real estate lets you use other people's money to buy an asset that pays for itself. That is what he misses. His whole philosophy depends on you earning more income. But with wages growing 3% while inflation runs 3%, you never get ahead. You run in place like a rat in a wheel, the exact thing he is warning you about. The only way out is to own hard assets that produce cash flow, and you buy those with debt. Here is the difference between us. He thinks all debt is bad. I think debt is a tool. Good debt and bad debt, high cost and low cost, and that difference is everything. He once said he would not take a billion dollars at zero interest. A billion dollars, costing him nothing. Put it in Treasuries and that is 30 to 40 million a year for doing nothing. He said he would pass. That is lunacy. When I borrow on real estate, someone else covers it. Always. The office building you work in and the Starbucks you walk into all carry debt, and the tenants pay it back. I own a single-family house, my tenant pays off the loan. I do not pay it. I do not need more income. I just need to keep a good tenant in that house. And yes, you get vacancies and turnover and the occasional problem tenant, but that is what management is for. He never had to learn that, because he does not use debt. And here is the part almost nobody gets. It is your money anyway. The cash sitting in your retirement account or your bank is yours. You are just borrowing it back at a lower rate and finding a tenant to cover it. That is why I disagree with him on debt. Used right, it is not the enemy. It is the entire engine.

Dave Ramsey says all debt is stupid. Credit cards, student loans, car payments, borrowing against your house. All of it. He says your income is your number one wealth-building tool, and the second you hand it to someone else, you give up your economic future. He is half right. On credit cards, I agree completely. You are paying 28 to 30% on that. But notice what he never mentions. Cost of capital. That is the whole game, and he skips it. High-priced student debt, fine. But my own loans were at 3%, and they were the only way I got into college. I paid them back over time. That was a good investment, not a stupid one. Where he is dead wrong is real estate. Debt on real estate lets you use other people's money to buy an asset that pays for itself. That is what he misses. His whole philosophy depends on you earning more income. But with wages growing 3% while inflation runs 3%, you never get ahead. You run in place like a rat in a wheel, the exact thing he is warning you about. The only way out is to own hard assets that produce cash flow, and you buy those with debt. Here is the difference between us. He thinks all debt is bad. I think debt is a tool. Good debt and bad debt, high cost and low cost, and that difference is everything. He once said he would not take a billion dollars at zero interest. A billion dollars, costing him nothing. Put it in Treasuries and that is 30 to 40 million a year for doing nothing. He said he would pass. That is lunacy. When I borrow on real estate, someone else covers it. Always. The office building you work in and the Starbucks you walk into all carry debt, and the tenants pay it back. I own a single-family house, my tenant pays off the loan. I do not pay it. I do not need more income. I just need to keep a good tenant in that house. And yes, you get vacancies and turnover and the occasional problem tenant, but that is what management is for. He never had to learn that, because he does not use debt. And here is the part almost nobody gets. It is your money anyway. The cash sitting in your retirement account or your bank is yours. You are just borrowing it back at a lower rate and finding a tenant to cover it. That is why I disagree with him on debt. Used right, it is not the enemy. It is the entire engine.

Ken McElroy

38,406 views • 2 months ago

Hundreds of universities are at risk of going out of business. Students and parents are voting with their feet. “There are a large number of institutions that provide zero value”. “The education is not being rewarded in the labor market” “If you come out of school with $200,000 in debt, and your income didn’t go up as if you had not gone to school, that’s not a good investment.”

Hundreds of universities are at risk of going out of business. Students and parents are voting with their feet. “There are a large number of institutions that provide zero value”. “The education is not being rewarded in the labor market” “If you come out of school with $200,000 in debt, and your income didn’t go up as if you had not gone to school, that’s not a good investment.”

Wall Street Mav

42,251 views • 4 months ago