Peruvian family buys $27M in condos to stash cash during coronavirus crisis

Edmond · Apr 16, 2020

gaussian said:
Rich people are rich because of generational wealth and knowing the right people and/or having the right connections. It's incredible what you can accomplish knowing people.

It's almost impossible to exceed the class of your parents by more than one jump. When you see someone who can buy 27M of condos they didn't earn that through normal means. Of course people will tell I'm wrong and we're all just temporarily embarrassed millionaires but the data seems to disprove the anecdotes every single time. If the average person's parents are middle class, they may themselves achieve a small sum of wealth (maybe a few million) by retirement. Saved properly this creates generational wealth. If someone starts from low class they might eventually get to middle class - maybe even slightly above. If you start with well off parents, upper class or better, your probability of finding loads of money yourself increases exponential. Your initial conditions strongly influence your potential of wealth generation. There's very little you can do to stop this because in the end if you didn't have connected parents and/or rich uncles you probably aren't going to be rich even if you're successful.

Now cue all the people telling me how they came from modest means and they grew their wealth to multiple 10s of millions. To those people I'd like to introduce Mr. Confirmation Bias and his friend Mr. Youre-full-of-shit.

You have no idea what you are talking about.

gaussian · Apr 16, 2020

Edmond said:
You have no idea what you are talking about.

https://degree.lamar.edu/articles/undergraduate/parents-education-level-and-childrens-success/

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2853053/

Parents’ educational level when the child was 8 years old significantly predicted educational and occupational success for the child 40 years later. Structural models showed that parental educational level had no direct effects on child educational level or occupational prestige at age 48 but had significant indirect effects that were independent of the other predictor variables’ effects. These indirect effects were mediated through age 19 educational aspirations and age 19 educational level. These results provide strong support for the unique predictive role of parental education on adult outcomes 40 years later and underscore the developmental importance of mediators of parent education effects such as late adolescent achievement and achievement-related aspirations.

https://eprints.lse.ac.uk/68507/13/Karagiannaki_Effect of parental wealth.pdf

This paper uses data from the British Household Panel Survey to examine therelationship between parental wealth and three child outcomes in early adulthood. Parentalwealth is found to have a very strong positive correlation with children’s degree-level qual-ification attainment at age 25. This correlation is stronger at below-the-median wealthlevels and remains strong after controlling for a wide range of confounding family char-acteristics. There is also evidence of a positive correlation between parental wealth andchildren’s employment probability and earnings. However, for both labour market outcomesthe parental wealth gradient is rather weak and for the employment outcome the effect islargely mediated by children’s education.

This paper suggests that if you are a child the only way to improve your odds of success over your parents is education.

Following

https://www.researchgate.net/public...sions_in_Germany_Compensation_or_Demotivation

Our analyses, based on data from the German Socio-EconomicPanel Study (SOEP), reveal that children with wealthy parents are morelikely to decide for higher education, even if they are faced with lowcognitive abilities (i.e., disadvantage compensation).

https://academic.oup.com/sf/article/96/4/1411/4735110

https://www.pewtrusts.org/en/about/...tsized-influence-on-childrens-economic-future

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2891175/

https://www.irp.wisc.edu/publications/focus/pdfs/foc272e.pdf

https://www.businessinsider.com/parents-determine-child-success-income-inequality-2014-1

https://izajole.springeropen.com/articles/10.1186/2193-8997-2-8

http://ftp.iza.org/dp1496.pdf

People much smarter than you and I have determined that what I'm saying is true. It's incredible you're allowed to vote.

systematictrader · Apr 17, 2020

wrbtrader said:
What's the street address plus condo unit numbers ???

I'm sure wearing a mask there...shouldn't alert anyone.

wrbtrader

Good one good laugh

systematictrader · Apr 17, 2020

gaussian said:
Rich people are rich because of generational wealth and knowing the right people and/or having the right connections. It's incredible what you can accomplish knowing people.

It's almost impossible to exceed the class of your parents by more than one jump. When you see someone who can buy 27M of condos they didn't earn that through normal means. Of course people will tell I'm wrong and we're all just temporarily embarrassed millionaires but the data seems to disprove the anecdotes every single time. If the average person's parents are middle class, they may themselves achieve a small sum of wealth (maybe a few million) by retirement. Saved properly this creates generational wealth. If someone starts from low class they might eventually get to middle class - maybe even slightly above. If you start with well off parents, upper class or better, your probability of finding loads of money yourself increases exponential. Your initial conditions strongly influence your potential of wealth generation. There's very little you can do to stop this because in the end if you didn't have connected parents and/or rich uncles you probably aren't going to be rich even if you're successful.

Now cue all the people telling me how they came from modest means and they grew their wealth to multiple 10s of millions. To those people I'd like to introduce Mr. Confirmation Bias and his friend Mr. Youre-full-of-shit.

1. How can you be a trader and say that,
2. who the hell
Do you need to know to learn how to trade?

virtusa · Apr 17, 2020

gaussian said:
...It's incredible you're allowed to vote.

I agree with most of what you wrote, but made one reflection: Watching who became president in the US they should also have tested a lot of people on their abilities to vote too.

ironchef · Apr 17, 2020

gaussian said:
It's almost impossible to exceed the class of your parents by more than one jump.

You did say almost, otherwise Gates, Bezos, Buffett, Munger, Trump ... would disagree.

virtusa · Apr 17, 2020

ironchef said:
You did say almost, otherwise Gates, Bezos, Buffett, Munger, Trump ... would disagree.

Trump?????? He cannot even reach at the height of his father's ankles. And even to get there he even needed all the money he inherited from his father. Without that legacy, he would probably sleep under some bridge now.

SunTrader · Apr 17, 2020

virtusa said:
... Without that legacy, he would probably sleep under some bridge now.

That day may yet come.

ironchef · Apr 17, 2020

virtusa said:
Trump?????? He cannot even reach at the height of his father's ankles. And even to get there he even needed all the money he inherited from his father. Without that legacy, he would probably sleep under some bridge now.

Hey, he became our President from a small time landlord in NYC.

Overnight · Apr 17, 2020

ironchef said:
Hey, he became our President from a small time landlord in NYC.

That's because of two things, and two things only.

Money...

And chutzpah. There are not many people in history who have employed the two in such a masterful and narcissistic fashion as the Donald.