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Comment by dyauspitr

1 day ago

The 10% interest they would have to pay on the loans is almost as much as the capital gains would be.

If capital gains tax is 15% that 5% on let’s say $1mil is $50k that is not „almost as much” if you can pay 10%.

You are not getting rich by throwing $50k to trash.

  • 10% compounded which means it gets much closer to 15%

    • Not going to argue back and forth - as I don’t have any knowledge on those deals.

      But I don’t believe they get 10% more like 2-3% and most likely they pay back any amount as soon as their stock value goes up to cover the loan not to accumulate compounding.

      They have deals normal people don’t get. For banks those are free and sure money deals as well.