Re:Man Built a $188M Fortune Investing in Stocks Then Donate...
by peterwoerner on Tuesday March 30, 2021 @12:19PM
(#26636545)
If you had a million you could also get a loan with interest less than "risk free" assets. E.g. The stock market makes 7-10% but you can get a loan for 1-3%. So 1.5x your returns then become 12-16%.
Perhaps you can invest in lower risk dividend stocks which will pay out your interest + a little and 3x. If we assume those stocks only make 4% but also pay out 3% then you are looking at 16% returns. Moreover when those dividends get raised you are doing even better.
Leverage can go a long way if used well.
Re:Man Built a $188M Fortune Investing in Stocks Then Donate...
by Retric on Tuesday March 30, 2021 @11:59AM
(#26636213)
The article points out 2,000x returns where possible if he started at 18 using the equivalent of index fund investing. So, he could have underperformed the market and turned 1 million into 2 billion let alone 100m. The critical issue was not spending his inheritance rather than needing to have amazing returns over that timeframe.
However, I fail to see how that removes any value (or makes the task look easy) regarding Mc Donald's perspective. For that one guy who transformed 1 million into 100 millions, how many actually lost most of their initial million (in stock trading)? I am like most of us here: I imagine that if I had a million somehow, then I could easily become a billionaire thanks to my wonderful intelligence and wits, because I am better than every other millionaire out there, right? That is all wishful thinking though, and I dread confronting reality to my ego.
In reality, if I had a million, I guess I would invest it into the most risk-free assets rather than bet it all in stock trading.