Someone said if Trump had just invested his millions of inheritance money in the S&P 500 in the 80s he would be just as rich as he is now.
I'm not good at this. Pic related is my calculation that shows he would have only 1.5 billion roughly and that gives him 0 cents to even live on for those 40 some odd years. Please someone show me if I missed something thank you.
They forget that risk is inversely proportional to potential profit. Stocks are more risky than real estate and trump made his money in real estate. You should compare his performance I others in the property game.
If you're calculating off the 30 year avg or whatever, you're assuming the investor copped the full losses of every down year to even out at 10%. No one is going to do that. More likely in the down years you'd go to bonds, cash, PMs, foreign markets etc
His father left him 700,000,000 in NYC real estate. The calculation needs to be based on his liquidation of those assets and putting everything into S&P 500 and not touching it. You'll get the number people are referring to.
But, no one leaves it there like that. He needs yachts and hookers and such.
It's just a statement that he had money and didn't really do much to make more. Property values went up, there's his financial success. Ta da