4 ms·
Wow. No. Its only appropriate to compare returns against the sp500 if you are taking on exactly the same amount(and type) of risk as the sp500. By this bad lo
by tryptophan 8y ago
Wow. No.
Its only appropriate to compare returns against the sp500 if you are taking on exactly the same amount(and type) of risk as the sp500.
By this bad logic, bonds are a terrible investment and nobody should ever buy them because the s500 is better.
Same goes for owning private companies, although it is murkier to see.
- asdfasgasdgasdg 8y agoTo be fair, it seems like Dell took a larger risk than the typical S&P 500 investor. So I think it would be fair to say his performance is even worse than that naive comparison would suggest. I wouldn't necessarily characterize Dell as an idiot though. :)
- syrgian 8y agoThat's probably his point. Bonds have less return than shares because they have less risk. A single company is always going to be riskier and more volatile than the sp500.
- alasdair_ 8y agoThere are many single companies with a lower beta than the sp500.