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Here, it is crucial to distinguish between the principal balance on a loan and the current payoff amount. However, this correlation is rarely linear. It is also important to consider the lifestyle and expenditures that accompany such a high profile career. While the paper value of stock holdings might show a number in the hundreds of billions, actually accessing that wealth requires selling assets, which can trigger massive tax liabilities and crash stock prices. Given that the Contrafund routinely holds over $100 billion in assets, the fee structure generates substantial income.
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