3 ms·
Whatever investment made him that money probably also tanked later on. It sounds like he invested in stocks and waited too long to cash out.
by nilkn 13y ago
Whatever investment made him that money probably also tanked later on. It sounds like he invested in stocks and waited too long to cash out.
- kohanz 13y agoAgreed that a tanked investment (stocks or real estate) is the likely explanation, but that is my point. A decade ago he was 45 years old. To have the vast majority of his net worth tied up in volatile investments is what I would call financial mismanagement.
- VLM 13y agoThe problem is there are no non-volatile investments anymore. Real estate? LOL. If you want non-volatility there are plenty of govt bonds paying well under the inflation rate, but I wouldn't describe that as an investment.
- kohanz 13y agoBonds and the like (e.g. savings account) are investments, it's just that they have low reward paired with a low risk. This case demonstrates the utility of that low risk. Certainly falling behind a bit to inflation is a minor concern compared to losing $1M in 10 years.