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Comment by philipallstar

2 days ago

> If I use cash to buy 1B dollars in Microsoft shares today, am I not worth a Billion dollars...?

No. It will be higher. Say you spend your money on shares advertised at different prices, buying the cheapest first, like this:

  800000 shares at $500        $400,000,000
  300000 shares at $750        $225,000,000
  200000 shares at $1000       $200,000,000
  100000 shares at $1250       $125,000,000
  33333 shares at $1500        $ 50,000,000

  Total number of shares:      1433333

  Net worth (1433333 * $1500): $2,149,999,500

Your "net worth" is over double the money you just spent.

That's why net worth is stupid.