Clown-Free Zone... sorry, no clowns allowed Message Board

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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: pater tenebrarum who wrote (107524)	6/8/2001 9:17:32 AM
From: Mark Adams	Read Replies (1) of 436258

The reason capital gains aren't counted is that your capital gain ultimately comes from some other investors savings. Its a trasnfer payment, you are spending their* savings.* If you accept that investing is a zero sum game- I could agree with this. I'd say that capital gains fit this description only when short term trading/scalping is involved or the profit is from a short sale. Long term investing- ie redeveloping an underutilized property, creates new wealth based on the higher income stream the 'improved' property throws off. Long term stock investing is a bit more indirect- by purchasing outstanding shares from other investors, you free that capital for new investments. You could say the retail investor (ie us) indirectly feeds the venture funds and accredited investor activities. The reality is, the retail investor is the supplier of OPM, other peoples money. They take the risk, while management earns a salary and rewards themselves with stock options trying to make a go of it. The ultimate investor is the guy who prints up those shares for us to buy.

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