Basically it is the case that if someone left all their wealth in business equity to accumulate without any interference, they would slowly converge on owning all the wealth in the world (at least assuming a stable investment environment).
It’s actually pretty easy to see that this happens. If you buy and hold some stock and you always re-invest dividends, you will not lose stock unless all your companies go bankrupt, and you will slowly gain stock as you buy more from the dividend payouts.
It’s actually pretty easy to see that this happens. If you buy and hold some stock and you always re-invest dividends, you will not lose stock unless all your companies go bankrupt, and you will slowly gain stock as you buy more from the dividend payouts.