Comment by snowwrestler

Net worth is the denominator for things that people actually want to, which typically don’t require converting it all to cash at once. For example, pulling 4% of your net worth per year is one way to fund a retirement. So you won’t know if you’re ready to retire unless you’re tracking net worth.

For very rich people like Gill Bates, net worth is going to be the denominator for massive loans, tax strategies, and corporate maneuvering. Again, none of that will require converting the entire net worth to cash all at once. That doesn’t mean it’s not real.

Finance is a complex subject, sure, and it gets more complex the bigger the numbers. That doesn’t mean it’s misleading.