Business equity

Business equity is ownership of an operating business, and it is the dominant engine in nearly every large fortune: roughly 70% of billionaires are self-made, overwhelmingly through concentrated ownership of one scaling company (UBS data). The mechanism is pricing — a business sells at a multiple of its profit, so ₱1 of durable extra profit is worth ₱3–6 at sale, while ₱1 of salary is taxed once and spent. For the learner this course is written for, the agency is asset #1.

First used in: 0.3 · The three engines and the ladder