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Datapoint for reference: if you invested in an SP500 fund during the same time you would have roughly doubled (around 180%) your money (an annualized return of
by glofish 7y ago
Datapoint for reference: if you invested in an SP500 fund during the same time you would have roughly doubled (around 180%) your money (an annualized return of 11%).
- nabla9 7y agoThat's the proper comparison. Investing into startups and unicorns should provide significant yield over diversified and less risky investment. Getting the same result from taking more risk is not a good investment. from the end of March 30, 2015 +56% SP500 Price index +70% SP500 Total return index +83% Nasdaq price index Uber, Palantir, Airbnb, Dropbox, Pinterest, and SpaceX doubling their valuations would give only +3.2% annualized return over Nasdaq. I don't see the risk/reward ratio of a good investment if the price just doubles in that period. (FAANG is another good comparison).
- iamsb 7y agoHow is investing in companies which are already 100 bn in valuations more risky than SP500? I am sure all investors who put money in these companies when they were risky, made very good returns, far more than SP500.
- nabla9 7y agoIt's not the size but the way they operate: * plan is to forego profits to gain market share, negative earnings * free cash flow is negative * lots of debt. Dropbox -40%, Uber -28%, Pinterest -23% since the IPO.
- glofish 7y agoAre you saying that all one needs to do is put money into the risky companies that will succeed and avoid the risky ones that won't?