Chris Naugle

So you're still making the 6% on the full 100, even though the 100 is out making 15.

So effectively, what Mike was doing is making money twice on the same dollar.

Because he was.

He's making a spread plus uninterrupted compounding interest.

There is no other place on earth your dollar can earn twice for you at the same time.

Period.

Unless you're a very, very wealthy individual, like Elon Musk, let's use that example.

You've all probably heard Elon or heard people talk about how Elon does things.

He borrows money.

How?

Well, Elon owns a lot of stock.

stock in Tesla, stock in all these other companies, and that stock's worth tons of money.

But he doesn't want to sell his stock, because then that's a taxable thing.

He wants tax-free money.

So what does he do?

He borrows from a margin account.

But he's got enough where the brokerage will allow him a margin account.

Now, if his stock goes up, Elon has more margin to use.

If the stock goes down, Elon has less money to use.

We've heard about that too.