The 1% rule

Slight edge, perhaps. I think it is something different.

Say I followed the exact same path (slight edge and all), started investing at 25 etc. but I was born 5 years later.

Where would I be. I made a lot of mistakes covered up by the boom. Would I have been so lucky starting 5 years later? Now i've leveraged my knowledge and learnt a different set of skills which will get me through the next correction which are much more complicated than a buy-reno-hold. Would I have had the guts to try it out as a first investment?

I'll come out the other end better off and then leverage again. Not sure how it sits with the world of fairness, it is what it is I suppose.

 

There is no world of fairness - it's just do your best with the opportunity that presents itself. There's no point crying about being born 5 years later - there may be a point at which this is a benefit to them. Swings and roundabouts

 

It sure does apply.

Think of auctions: $1,000,000 final bid.
1% extra to win it.
$1,010,000. $10,000 extra. Could make the difference in owning the property to see it double and gain $990,000 capital gain vs the guy who missed out and gains nothing.

 

Most of this is also due to the rich lobbying governments to favor their business interests and having deep connections with the rich. My friend who has a kid in private school told me the only reason he spends $30,000/year is to hang out with other rich folks and ensure his kids are surrounded by rich families so they can network better. Think of all the friends you grew up with, most are bonded during primary/high school. These folks are generally the people you hang out with and with long term friendships, are the ones you learn from. E.g. tax strategies, investment choices, end up in business partnerships. My 2c