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Berkshire Hathaway has outperformed that vast majority of stocks over that time period. Saying he could have used leverage and some good stocks to turn 140 mil
by onemoreact 15y ago
Berkshire Hathaway has outperformed that vast majority of stocks over that time period. Saying he could have used leverage and some good stocks to turn 140 million to 140 billion is also true, but when you don't know how companies are going to preform your not given the choice of a safe 19+% ROI for 20 years.
- rayiner 15y agoI gave Berkshire just as an example of returns that are possible in the market. When you've got 140 million to invest you don't buy stocks like the little people. You put it in a hedge fund like Blackstone that has returned an average of 20% per year over the last two decades.
- cjy 15y agoThe average hedge fund averages something closer to 11% (Wikipedia_. It is easy to pick the winners after the fact. And, when you have too much money it is harder to get greater returns on it. It's a lot easier to find 10 million dollar opportunities than 1 billion dollar opportunities.
- onemoreact 15y agoYour confusing historical returns with expected returns. There are types of investments only available to people or institutions with a lot of capital, but plenty of companies invest in them and you can buy a piece of them on the public stock market. Unfortunately, most of these investments carry a high risk of returning nothing. It's like noticing your friend went to Vegas and made 5,000$ in a few hours, the problem is he only did that by risking losses and your just happen to see the upside. PS: Or as my grandfather who made plenty of money in the stock market said, "Don't invest in banks they can look like their doing well and then die at any time."