4 ms·
I'd say he was average at making money. It sounds impressive but you need to annualize and compare it to the market as a whole. 5.36B to 22B in 12 years = 11.7
by throwawaymsft 10y ago
I'd say he was average at making money. It sounds impressive but you need to annualize and compare it to the market as a whole.
5.36B to 22B in 12 years = 11.7% annualized profit increase from 2012 to 2014.
However, MSFT stock appreciation was 22 -> 41 or 5.2% annualized. (Stock includes expectations of future growth, etc.)
Average S&P was ~7.8% for that time period.
Ballmer would have done better for investors by just investing in an index fund.
- strictnein 10y agoYou including their 2003 stock split in your calculations? edit: because, if not, it's more like a 9.85% return on the stock
- throwawaymsft 10y agoThanks for the catch; I didn't account for the split. Still, it looks like the SPY handily beat MSFT's return over that time period. https://www.google.com/finance?chdnp=0&chdd=1&chds=1&chdv=0&chvs=Linear&chdeh=1&chfdeh=0&chdet=1392411600000&chddm=1081115&chls=IntervalBasedLine&cmpto=NYSEARCA:SPY&cmptdms=0&q=NASDAQ:MSFT&ntsp=0&ei=UGpUWIn_NoL82AaWl6iQCw https://www.google.com/finance?chdnp=0&chdd=1&chds=1&chdv=0&...