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I don’t quite see it that I way. I think it is much harder to find 200,000,000 dollars worth of mispriced assets than it is to find 20k. The crumbs that would b
by jklein11 5y ago
I don’t quite see it that I way. I think it is much harder to find 200,000,000 dollars worth of mispriced assets than it is to find 20k. The crumbs that would be a rounding error on 200 mil would be a huge return on 20k
- brudgers 5y agoFinding mispriced assets requires dumb luck. With $200,000,000 you can look for someone taking their returns or liquidating a position. You can buy a profitable business for its future cash flow at market rate. It with adequate capital becomes a matter of not experiencing bad luck versus getting lucky. At $20k the rate of return for money is swamped by the rate of return for time. There are better uses of time than seeking high return rate investments. Saving the money means if you stumble upon one, the money is there available quickly. It is also an acknowledgment that you are relying on dumb luck not beating the market.