Business School with Sharran Srivatsaa How Billionaires Avoid Taxes
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Dec 30, 2025 Discover how billionaires like Elon Musk and Jeff Bezos avoid hefty capital gains taxes by utilizing securities-based lending. Learn the mechanics of this strategy that allows them to access liquidity without selling assets. Sharran explains the importance of not triggering wealth destruction through sales and highlights the real risks involved, such as margin calls. He provides insights on how everyday investors can use similar tactics to keep their money compounding while funding new ventures.
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Borrowing Preserves Compound Growth
- Billionaires avoid capital gains taxes by borrowing against appreciated securities instead of selling them.
- Borrowing preserves ownership and keeps investments compounding while providing liquidity.
Set Up A Securities Line Of Credit
- Set up a securities-based line of credit at your brokerage to access cheap liquidity when needed.
- Only pay interest on what you borrow and keep your portfolio working instead of selling and triggering taxes.
Why Interest Rates Are Low
- Securities-backed loans cost less because the bank already holds liquid collateral and can sell it quickly if needed.
- Lower risk to the lender translates to interest rates near 5–7% versus much higher unsecured rates.