Re:Michael Dell Gets $12B Richer with Break from Public Eye
by syrgian on Saturday January 19, 2019 @12:33PM
(#18948069)
That's probably his point. Bonds have less return than shares because they have less risk.
A single company is always going to be riskier and more volatile than the sp500.
Re:Michael Dell Gets $12B Richer with Break from Public Eye
by alasdair_ on Saturday January 19, 2019 @02:29PM
(#18948709)
There are many single companies with a lower beta than the sp500.
Re:Michael Dell Gets $12B Richer with Break from Public Eye
by asdfasgasdgasdg on Saturday January 19, 2019 @12:32PM
(#18948064)
To be fair, it seems like Dell took a larger risk than the typical S&P 500 investor. So I think it would be fair to say his performance is even worse than that naive comparison would suggest.
I wouldn't necessarily characterize Dell as an idiot though. :)
Its only appropriate to compare returns against the sp500 if you are taking on exactly the same amount(and type) of risk as the sp500.
By this bad logic, bonds are a terrible investment and nobody should ever buy them because the s500 is better.
Same goes for owning private companies, although it is murkier to see.