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Hi Friend,
In 2020, Elon Musk needed cash.
He had $52.9 billion worth of Tesla stock. So most people would assume he just sold some.
He didn't.
He borrowed $515 million against the position instead. The shares stayed intact. Tesla kept compounding. The tax event never happened.
If he’s already the richest man in the world, why go HALF A BILLION DOLLARS in debt when he didn’t half to???
Because selling would have done three things.
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Shrunk his position.
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Triggered a massive tax bill.
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Stopped the compounding.
Borrowing did none of those things. The equity kept doing its job while also funding whatever he needed the cash for.
This is ROE thinking applied to a personal balance sheet.
The question Musk asked is the same one I talked about yesterday with Saylor.
What is every dollar of equity I already own doing right now?
Musk looked at his Tesla position and saw an asset that could do two jobs at once. Appreciate in value and serve as collateral for capital he needed elsewhere. Selling it would have reduced it to one job and handed a chunk of it to the government in the process.
Most people only know how to make equity do one job.
They save it. They let it sit. They wait for the day they sell.
You probably don't have $52.9 billion in Tesla stock. But you likely have home equity, retirement accounts, a business, a stock portfolio. Capital that is doing one job right now when it could be doing more.
That's what the live session next Thursday is built around. Not how to find better investments. How to make what you already own work harder.
Grab your spot here: https://link.1markmoss.com/890Lm
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