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a $3 billion dollar return on $76 is not that impressive, this is about a 3.9% return. to put this in perspective, in January 2014 30 year treasuries were yiel
by blahblah3 12y ago
a $3 billion dollar return on $76 is not that impressive, this is about a 3.9% return.
to put this in perspective, in January 2014 30 year treasuries were yielding 3.92% (although they have come down quite a bit since then).
- archagon 12y agoI assume you mean $76 billion. Because otherwise that would be a healthy 3,947,368,421% return. ;)
- blahblah3 12y agohaha yes, $76 billion. also note that if bill gates had simply put all his money in an sp500 index fund last year he would have earned %13.69, or $10.8 billion
- makeset 12y agoAlso note that putting that kind of money anywhere creates so much market impact in practice that the gains diminish considerably. E.g. SPY, the most active S&P500 index (also the single most heavily-traded U.S. stock), had a total dollar volume of $275B for all of 2014. Buying billions' worth of it, even over long periods, would drive the price up in the process and make further purchases more costly.
- blahblah3 12y agohe obviously wouldn't put it all into spy, you can buy a diversified portfolio of stocks that basically replicates the s&p 500. http://www.nasdaqtrader.com/Trader.aspx?id=DailyMarketSummary http://www.nasdaqtrader.com/Trader.aspx?id=DailyMarketSummar... (74 billion dollars traded in one day)
- bhayden 12y agoThere is likely a lot of reasons why investing billions of dollars is not comparable to millions. You stop becoming a participant in markets and become an influencer. I am sure there would be an issue with investing $76 billion in treasuries too.