- 29 Apr 2016 16:07
#14674973
Not by banking it, but rather by entrusting it to the same financial tools used by every wealthy guy, foundation, corporation, etc.
He inherited 40-200 millions 40 years ago, and now he has 2-4 billions. Which means he increased his wealth 10-100 times over 40 years. This is a yearly growth of 6%-12%.
During that time window the DJIA index (Dow Jones) increased 15 times fold with a 5-6% yearly performance. And asset managers typically provided robust yearly performances in the 5-6% brackets. Both asset managers and index funds are relatively low risks while Trump did take a lot of risks.
This is an important thing to consider: he did take a lot of risks. Betting is fine as long as you can afford to lose, but it takes luck as much as talent to win. No one can predict the future, only evaluate probabilities.
So as for whether Trump is a good business man or not, given the lack of data he may be half-decent to very good, we cannot tell. But personally I would not entrust him my money: his results are not worth his risks. And I have a pretty good idea of how to earn money.
Hindsite wrote:That is ridiculous. There is no way that Trump would be as wealthy simply by banking the money.
Not by banking it, but rather by entrusting it to the same financial tools used by every wealthy guy, foundation, corporation, etc.
He inherited 40-200 millions 40 years ago, and now he has 2-4 billions. Which means he increased his wealth 10-100 times over 40 years. This is a yearly growth of 6%-12%.
During that time window the DJIA index (Dow Jones) increased 15 times fold with a 5-6% yearly performance. And asset managers typically provided robust yearly performances in the 5-6% brackets. Both asset managers and index funds are relatively low risks while Trump did take a lot of risks.
This is an important thing to consider: he did take a lot of risks. Betting is fine as long as you can afford to lose, but it takes luck as much as talent to win. No one can predict the future, only evaluate probabilities.
So as for whether Trump is a good business man or not, given the lack of data he may be half-decent to very good, we cannot tell. But personally I would not entrust him my money: his results are not worth his risks. And I have a pretty good idea of how to earn money.