4 ms·
What's remarkable about this whole affair is that when all is said and done, one can step back and see the following: A guy bought an NBA team for $12.5 millio
by nlh 12y ago
What's remarkable about this whole affair is that when all is said and done, one can step back and see the following:
A guy bought an NBA team for $12.5 million in 1981, made some horribly racist remarks in 2014, and then realized a 160x return on his investment because of those remarks and the attention they brought to the team.
Quite a world we live in, eh?
- coralreef 12y agoWell the valuation was always there, not sure his how his racist remarks helped realize the gains aside from forcing him to sell.
- baddox 12y agoThat analysis is deeply flawed. He didn't realize a 160x return because of those remarks. I highly doubt that those remarks increased the value of the team.
- castis 12y agoCorrelation does not imply causation
- jhonovich 12y agoIt's a 16.6% CAGR - very good, but less astronomical than looking at simply the multiple of the original purchase amount.
- simulate 12y ago16.6% CAGR over 33 years is astronomical. Apple, one of the most successful corporations in history, has achieved an 18.95% CAGR since its launch in 1984. $100,000 invested in Apple in 1984 yields $18 million today. You can play with that here: http://forio.com/contour/examples/investment/investment.html http://forio.com/contour/examples/investment/investment.html Achieving a double digit CAGR over multiple decades is extremely rare.
- ASneakyFox 12y agoHe would have made that money anyway. Actually he lost money. If he sold it later it might be worth even more.