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Cool book. Thanks for sharing. I'll give it a read.
I've had the opportunity to work with a lot of billionaires (and former billionaires) and in general they have the following traits:
1) Willing to take large risks including "bet the farm" positions
2) Smart, but not the smartest. They often fail to see/acknowledge the risks inherent in their chosen gamble.
3) Generally good at promoting their interest. They sell their vision to others (investors, partners, employees and regulators) and attract debt and equity investors (Other People's Money)
4) Lucky - And over time, become convinced that their luck is actually talent. I can't overstate this. People don't talk about all of those that failed doing similar things, but rather celebrate the winners as somehow special and more gifted. Winners write history.
5) Often have children that don't share the above characteristics, talents, or opportunity set.
I'm not surprised that the book seems to suggest (having only read the summary) that investment concentration which was so successful on the way up becomes the downfall as economic seasons change. Such is the shifting sands of the economy. A dismal science indeed...
If there was a group that might be positioned to better preserve wealth, it could be the PE and Hedgefund guys that essentially create professionally managed family offices. In theory, these could be structured to have diversified and balanced portfolio allocations as well as risk exposure limits that would allow for long term defensible performance. I won't be around in 100 years to measure.
But as the expression goes: From shirtsleeves to shirtsleeves in 3 generations....
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