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So how do you create substancial value to the world if your portfolio is compounding at +35% – in a zero sum game, what investing eventually is, someone elses loses -35%.
BS capital – the easy answer would be that he believes he can create more value with that capital return than the person who lost it could. Transactionally, investing is zero-sum. But that doesn’t take into account how the capital is redeployed in the future.
I think you should also consider companies that have driven substantial returns over time are not necessarily 0 sum. Like Chris mentioned some companies are able to deploy capital and compound returns that compound your investment. Consider KO or Capital Cities for Buffett or an investment in AMZN. The economics of the businesses and their ability to grow drove returns for the holders vs someone one losing.
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