Re:SoftBank’s debt obsession
by r2d2-c3po on Tuesday November 06, 2018 @03:30PM
(#18394660)
'very little risk' - I think standard deviation of return on S&P is something like 15%-20%...I wouldn't define a strategy with a buffer of 2.7% very little risk when the standard deviation is that high...
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Pasted from another comment:
I don't know more than the basics, my thought was if you pocket $2b/year and invest it, you have $13B+ in 10 years (plus your own $28b you've invested that I didn't include). So $40B to whether a storm every 10 years seems reasonable.
Variance is not risk. https://www.ncbi.nlm.nih.gov/pubmed/18554271