What wealth does to your brain?

http://theweek.com/articles/441315/wealth-does-soul

thoughts on this. in summary, the richer you become, the more of an ass you are.

Your inference doesn’t seem to match the article’s.

It reminds me of my older US relatives (most of them are 1st generation) who all bring their kids to poorer countries so they get exposure to other kinds of lifestyle. I think… the kids are still not very grounded though…

Michael Lewis’s editorials have always been some of my favorites. He’s a fantastic writer.

I’ve noticed that, in general, the wealthier a person is, the more they fiercely guard their wealth against the possiblity of anybody but their kids getting it. One of our clients has liquid assets of ~$150m, and plans to leave absolutely none of it to charity. None of it goes to starving kids, scholarships, making Midland a nicer place, etc. 100% of it is going to his daughter (who has already gone to the most elite private schools and married pretty well).

you seem aggrieved by what this guy does with his money. why do you care? it’s his money, not yours.

How did this guy get his wealth? I think it matters.

@Turd - It’s not personal. And I agree that it’s his money and he should do what he wants with it.

But I do think that people should have a duty to give back. Not that my pocketbook is overflowing at the moment, but I don’t plan to give my children everything I have when I die. I plan on sending them to college, grad school (if they choose), helping them buy their first house, and giving them something as a foothold. But I plan on giving the vast majority of my money (assuming I have any) back to organizations that will use it to make the world a better place. (Church, scholarships, etc.)

@Ohai - I believe he was born into it.

Let me also add–this guy, even though he’s genuinely ultra-wealthy, is one of the nicest, most down-to-earth guys I’ve ever met. He refuses to join a country club (says they’re too expensive), drives a Ford Explorer, and wears JC Penney-type clothes. He usually eats crackers and tuna fish at his desk for lunch instead of hobnobbing with the other rich folk.

I guess what I am getting at is that people who inherit wealth tend to believe it is an entitlement, and that their descendants deserve to have the same privilege in life - my dad left me a fortune, so I leave my kids a fortune. On the other hand, people who earn wealth, i.e. all these techy guys, tend to believe that people should earn the wealth themselves.

One thing you learn when you start making a lot of money is that everyone – EVERYONE – starts trying to get into your pocket. You will suddenly randomly be overcharged for things because people think they can get away with it. You will have people constantly trying to upsell you for shit you don’t need. You will have your attorney trying to rip you off on billable hours, etc., etc. It literally never ends. Previously, I never understood why rich people can be so stingy over such small amounts of money, but now I understand: It’s because everyone is trying to rip you off all the time and after a while you just lose it and start going apeshit on people. I ever get to $150m (realistically possible IMO), I would give some of it away but I would definitely give most of it to my heirs.

sounds like CvM

This sort of stuff is hardly unique to rich people… it’s just that the payoff to being more careful about it (and one’s ability to push back and get satisfaction from doing so) is increased. That incentivizes vigilance.

What’s the line? Money doesn’t create character, it reveals it.

That’s some big talk, Mr. Internet Man.

Jeremy Grantham said his father told him: “Great wealth is a test of character, and most men fail.”

This is a good point that I had never thought of. As a service provider (who is not involved in the billing or collections process), I always thought that you could charge more to those who had more, but I never thought about the fact that they would get defensive about it. Probably rightfully so, too.

I would probably quit before that point but I know lots of hedge fund people that have made that much or a lot more. When you have billionaires offering to write you $50 million checks, it’s not out of the question. I’d probably just shoot for a really good 5 year run and hang it up though, to make $150 would probably take at least a decade and that would be if the timing worked out perfectly. The guy I worked for (who is the best) who taught me has about $700 million now and it took him about 20 years to get that far. You can compound your wealth ~5x over the cycle if you do it right. He had an exceptional cycle and did about 10x starting in 2008 using his previous winnings. There are “lots” of pedestrian fund managers you have never heard of who made >$100 million.

You can charge more, but you also have to provide some improved level of service to go with it. If you just charge more for the same service, of course it feels unfair, unless it’s a service that clearly provides more benefits of whatever sort.

I’m currently reading Flash Boys (and read most of his other books) and it’s unbelievable how this man can write about the most boring people yet find a way to keep you on the edge of your seat. He’s a real talent. The best thing he did for society was leave his Wall Street job and write books.

^agreed