5 ms·

Doubling your money over 18 years is a only 4% rate of return. Not terrible, but also not impressive.

• adventured 9y ago
  His compound rate of wealth increase, post paying taxes on the sale, is around ~7.5%. That beats the S&P 500 over that time, which very few professional money managers can do. $1.1 billion to $4.08 billion [1]. His primary business holding, the Dallas Mavericks, has increased in value from $285 million to $1.9 billion [2] (per the latest Forbes estimate). For that investment, he has seen a rate of value increase of about 11% per year. That investment stomps the S&P 500 massively (which was at ~1400 when the acquisition closed). [1] https://www.bloomberg.com/billionaires/profiles/mark-cuban/ https://www.bloomberg.com/billionaires/profiles/mark-cuban/ [2] https://www.forbes.com/sites/kurtbadenhausen/2018/02/07/nba-team-values-2018-every-club-now-worth-at-least-1-billion/ https://www.forbes.com/sites/kurtbadenhausen/2018/02/07/nba-...
  • dcdanko 9y ago
    > His compound rate of wealth increase, post paying taxes on the sale, is around ~7.5%. That beats the S&P 500 over that time, which very few professional money managers can do. Very few money managers that are accessible to people with less than 10^8 USD can beat the S&P after fees. Bridgewater, (Ray Dalio's fund mentioned above) regularly gets 12.5% annual returns and they are most notable for being consistent, not high. Pre-2008 some investment banks were getting up to 20%. A billionaire making 7.5% annually is fairly unimpressive if their goal was to make money (which it might not have been for Cuban).