The whole world is on “Facebook”. Mark Zuckerberg became a multi-billionaire several months ago because his company issued stock so others could invest in it. I think he peaked at $16 billion in net worth. It is probably enough to pay cash for a new Toyota Camry.
Mark got married shortly after becoming a billionaire. He and his new bride moved into a $6 million dollar home. Not a bad way to start married life. Mark had a decision to make. Pay cash for the new home or finance it. Not many people have the option of paying cash (for him $6 million is “pocket change”). Nope he didn’t pay cash. He financed the humble abode. He pays 1% interest. That is not a bad rate compared to the average homeowner. I’ve heard rates as low as 3.25-3.5% for someone with a great credit rating and a significant down payment.
If I could borrow money for 1% I would be standing at the door of my local bank. Of course I don’t have $16 billion extra cash lying around.
In Zuckerberg’s defense, he has a floating rate mortgage. If treasury rates or a slick measure called LIBOR start increasing, Zuckerber’s rate will increase monthly.
I guess nothing is new. People with money rule! My mother used to say “the rich get richer and the poor get kids”. Of course she had 4 kids at the time.
I’ve got to learn to make wise investments. I see that my Green Bay Packers are estimated by Forbes magazine to be worth $1.09 billion. My one share of stock must be worth a lot. There is a provision in the original Charter preventing the Packers from ever being sold. So I’ve got one share of stock, worth a lot of money and I can never sell it. There you have it! The story of my life.
Hot weather breaks today.
Love
Dad