by machyume
Something brewing that most people don’t realize. Private equity is rising. See that picture above?
Source: diversifiedtrust.com/blog/the-dominance-of-private-equity/
Exact numbers don’t matter, only where things are headed. Most of you are in the same miserable state that I am in, stuck flying coach. While we toil, gamble, and tuck our savings away into 401k and market funds, the tide is slowly rising against us.
Fast forwarding into the future and you can guess where this is going. All the profits are moving into private hands, where if you want to play, you get to join at the lowest tier. No more data will be available to you, and you will have to just trust that your share of the winnings is a fair one. The person handing you your portion has nothing to report, and you can take it or leave.
Private equity has no obligation to report anything, only that it exists and that it “pays taxes”. But that’s okay, we don’t need dividends, right? Heck we don’t even need companies to be profitable, cuz we are all willing to bet high multiples valuation for losing companies.
So you get those gains if you can, and then stuff it into your 401k, and it will still give something for now but will slowly deflate in the distant future.
Source: www.inc.com/bruce-crumley/blackrock-buys-private-equity-firm-in-125-billion-mega-deal.html