4 ms·
1 is definitely not true. There are many types of trades (for example, convertible arbitrage) which fundamentally require billions of dollars to get access to
by veyron 15y ago
1 is definitely not true. There are many types of trades (for example, convertible arbitrage) which fundamentally require billions of dollars to get access to opportunities. It's not that the opportunities have a large fixed cost, but rather that you won't be presented such an opportunity unless you are large. This also happens with institutional clients in wealth management: some opportunities, such as special IPOs, will only be presented to customers whose accounts exceed certain thresholds (e.g. 10M)
- mathattack 15y agoThe uber rich aren't earning double digits monthly on these investments, and they aren't hyper leveraged either. Yes, most of us don't have access to IPOs or Warren Buffet investments. In both cases the buyers shouldn't expect double digit monthly returns.