One of the things many people struggle with in takeover deals is valuation or networth of companies and individuals. When Jeff Bezos’ networth grew by $75 billion in 2020, there were calls that billionaires should be taxed more.
The confusion arises from the fact that we confuse networth with liquidity. If Jeff Bezos’ networth grew by $75 billion he pocketed that in 2020 we would only pocket that money if sold shares of his company at that time because that is the valuation of the company.
