Just last week, Kyith, better known as his online moniker Investment Moats, shared an article on Facebook. It was a link back to La Papillion’s article published in his blog Bully the Bear in November last year.
The title of the article was ‘I have Zero Net-Worth‘. Extremely catchy, and had it originated from anyone else, I would have dismissed it as click bait immediately. But having come from not one but two doyens, I know it is definitely worth reading about.
Asset minus Liability
Now we all know that the definition of Net Worth is Assets minus Liabilities.
The math is simple. We take everything we own and subtract from there everything we owe. If the final figure is positive, we would have more assets than liabilities and our networth would be positive. What this means is if we sell off all our assets and use ......