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by Max_Ehrlich
1716 days ago
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Fascinating, but I'm not sure about the assumptions. This model mainly doesn't account for risk in the calculation. The company owner might only work twice as much as the 9-5 salaryman. But he increases the value of his equity, while the salaryman just draws a monthly salary. Eventually that equity is valued at millions by investors, and that is how the company owner becomes rich. Or it could be valued at zero. Meanwhile, the salaryman is not even exposed to any of these extremes because he never took the risk. |
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