5 ms·
This calculation seems to ignore slippage. Donald Trump can't drop $500M into the S&P and get the same price per share that I can get if I drop $5k into it.
by yummyfajitas 11y ago
This calculation seems to ignore slippage. Donald Trump can't drop $500M into the S&P and get the same price per share that I can get if I drop $5k into it.
- MagnumOpus 11y agoYes he can, or at least nearly the same price with very little slippage. The S&P is not a single illiquid penny stock but a collection of 500 of the most liquid investments in the world, and 500 million dollars is a pittance compared to its capitalisation even back in the 80s. Sure, if he had to invest it in half an hour he would move markets - but if he had a year? No slippage from adding 2m a day distributed over 500 stocks...
- ahh 11y agoIt also assumes he consumed zero dollars from then til now. If he wanted to have a wealthy lifestyle, and can you really blame him, these passive returns drop quickly.