No, they don’t. Liquid assets don’t increase in value. If they had $1 in cash seven years ago, it would be worth less than that today due to inflation.
I’m pretty sure that liquid assets are things that you can spend, so cash and bank accounts. Anything that you have to sell to buy things is not a liquid asset. (Note that we are not talking about barter. I had a friend at college who traded a snake for a VW camper, neither of which would be considered a liquid asset. Even though technically you could put the snake in a giant blender…)
Wealth is not the same as liquid assets
Liquid assets are a type of wealth. For many people, liquid assets make up the biggest part of their wealth.
No, they don’t. Liquid assets don’t increase in value. If they had $1 in cash seven years ago, it would be worth less than that today due to inflation.
Stocks are liquid assets. They can increase in value.
T-bills are also liquid assets. They can also increase in value.
Savings accounts and money market accounts are also liquid assets. They can also increase in value.
I’m pretty sure that liquid assets are things that you can spend, so cash and bank accounts. Anything that you have to sell to buy things is not a liquid asset. (Note that we are not talking about barter. I had a friend at college who traded a snake for a VW camper, neither of which would be considered a liquid asset. Even though technically you could put the snake in a giant blender…)
When you’re a billionaire, most of your net worth comes from businesses you own, not liquid assets.
Billionaires are far more likely to own part of a business than 100% of a business. And if you own stocks, then you too own part of a business.