Chhabra: Substantial wealth comes from concentrated business ownership, not diversification
Ashvin Chhabra · Ashvin Chhabra – The Aspirational Investor (Capital Allocators, EP.260) · Jul 4, 2022 · at 19:26
Ashvin Chhabra explains the aspirational bucket of his wealth allocation framework, arguing that real wealth comes from concentrated human and financial leverage.
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“That is the engine of wealth creation. That is where all of wealth gets created, and so I analyzed the Forbes 400. I tried to figure out how wealth gets created, and it was really what I had learned in my interaction with these internet millionaires in 99, 2000. You take human capital, something you're good at, something you're passionate about, you work on it every day, you get better and better. You want to expand that, because that's your differentiator. You need to find more capital, and you need to find more human capital, you need to find more financial capital, and you need leverage. And the best kind of leverage is non-recourse leverage. And you do that over and over, your business gets bigger and bigger, and guess what? At some point, it's 95% of your portfolio, and you are wealthy.”
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