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Step 1: have $70k several decades ago, when it would have been the equivalent of about $250k today taking into account inflation. Taking into account the time v
by gamblor956 2y ago
Step 1: have $70k several decades ago, when it would have been the equivalent of about $250k today taking into account inflation. Taking into account the time value of money, that $250k would be worth several million in current purchasing power. (For comparison, most Hollywood stars made about this much back then and lived like kings; nice houses could be purchased for <$100k that today would cost >$10 million.)
Step 2: Be an investment banker and have access to lots of capital that lets you make repeated risky bets.
Step 3: Benefit from bailouts when many of those risky bets fail.
So, his story is not in any way replicable by normal people and isn't even replicable by most of his peers or new entrants into his own industry today.
- banku_brougham 2y agoDont you see? Just 10 dollars invested in 1933 could have become 80 bazillions.
- samus 2y agoTrue, he is a billionaire because he started early and . Most of us start late and don't have so much capital, so naturally we will never be billionaires, but investing regularly is still the way to make the most out of our money. Investing in shares truly carries a lot of risk if the stocks are not researched properly. In this age it is even harder since there is now a lot more dangerously inaccurate information to sift through. Thus TA recommends index funds. The S&P 500 compounds a lot over 30 years. Don't invest money you can't afford to lose.