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He would be wealthier today if he had immediately put everything in an S&P 500 index fund and spent the last 20 years ignoring it.
by raldi 9y ago
He would be wealthier today if he had immediately put everything in an S&P 500 index fund and spent the last 20 years ignoring it.
- adventured 9y agoThat's factually wrong. The S&P 500 was 1300 when he sold to Yahoo. He received $1.4 billion of Yahoo (14.6m shares at $95/each). He had to pay taxes on clearing out that position as well, so you can safely assume his after tax position was more like ~$1.1 billion. He very solidly beat the S&P 500. He's worth $4.08 billion today according to Bloomberg (ranked #500 on their global rich list). He has increased his net worth by nearly 4x. The S&P 500 is at 2747. It has just over doubled since April 1999. He'd be missing a billion dollars if he had gone with the S&P 500, including any dividends. He was better off with what he did, he beat the S&P 500 index fund. Not only did he make more money his way, he got to do what he wanted to with his money, such as buying the Mavericks.
- bdcravens 9y agoSure, though given his investments in startups etc he could easily have lost 90% of it.
- the_cat_kittles 9y agothank you. this is always something people forget. if you want to claim you are a good business man, you need to show that your businesses do better than an index fund.