Money Rehab with Nicole Lapin · Monday, September 28, 2026
Nicole Lapin highlights Bill Ackman's caution against the 'buy borrow die' wealth-building strategy, particularly the risks associated with borrowing against appreciated assets. While this strategy aims to defer taxes by borrowing instead of selling, Ackman warns that margin calls can force liquidation of assets at unfavorable times if the market drops significantly. Lapin stresses that leverage, even for billionaires, removes the ability to wait out market downturns.
“So, leverage is rich person speak for debt. And it cuts both ways. It can multiply your wins and multiply your losses. Bill specifically warning about borrowing against stocks that you already own. And this really surprised me because it goes against the buy borrow die strategy that has been associated with billionaires like Jeff Bezos.”
“The goal is for the interest rate of your debt to be lower than what your assets are earning, meaning your portfolio keeps compounding while you spend that borrowed money to live. Then, finally, the last part of the strategy is a little bit morbid. You die. We all die, but this is where the loophole really happens. Thanks to the step up in basis rule, your heirs inherit those assets at their current market value, wiping out all of the never taxed gains.”
“To be clear, the lesson isn't leverage is for suckers. It's that leverage removes your ability to wait out a storm.”