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Ah, I see what you're saying. This suggests a wide availability of alternative, reasonable-risk passive investments with 15% yield, which seems unusually high.
by sandoooo 7y ago
Ah, I see what you're saying.
This suggests a wide availability of alternative, reasonable-risk passive investments with 15% yield, which seems unusually high. What is this investment, usually? Stock buybacks?
- WalterBright 7y agoStocks, bonds, etc. Larger corporations often have a department tasked with managing such investments. If you were considering starting a business, would you consider a business with a projected ROI of 15% and you had to work 24/7 on it, compared with 10% ROI investing in the S&P 500 passively? I.e. don't look at what you'd make running the business. Look at what you'd make relative to passively investing the money instead. That's "opportunity cost".