4 ms·
66% CAGR is impossible. That would mean every million dollars you invested turns into $4 Trillion.
by rb808 7y ago
66% CAGR is impossible. That would mean every million dollars you invested turns into $4 Trillion.
- rat_1234 7y agoWell, the thing is that they cap the size of the fund at $10B so it's not really a CAGR per se as the original capital isn't appreciating at that rate. It's just they have $10B invested and then they distribute $6.6B per year and that's it (i.e., the fund doesn't become $16.6B next year). Still take your point that it's an insane figure!
- deleted 7y ago[deleted]
- gvhst 7y agoThe strategy is capacity constrained, they’ve returned all outside investor capital and distribute profit to employees to keep capital within accessible levels. The $1mm wouldn’t be able to compound as you’ve described as much of the profits will be returns, not reinvested.