by Claire Groden AUGUST 20, 2015, 1:47 PM EDT Index funds are friend, not foe. Trump’s net worth has grown about 300% to an estimated $4 billion since 1987, according to a report by theAssociated Press. But the real estate mogul would have made even more money if he had just invested in index funds. The AP says that, if Trump had invested in an index fund in 1988, his net worth would be as much as $13 billion. The S&P 500 has grown 1,336% since 1988. Other billionaires’ net worths have beaten the stock market’s growth in that time. Bill Gates, for example, saw his grow increase 7,173% since 1988 to $80 billion. Warren Buffet’s wealth grew 2,612% in the same time period, to $67.8 billion. Another recentAssociated Press reportfound that Trump is a much more cautious businessman than he lets on. “He holds few stocks for someone of his wealth and has grown increasingly dependent on making money by lending out his name to others rather than developing real estate himself,” the AP wrote.
The index funds weren't very friendly yesterday. I think he just does what he "knows". Sure, there's usually a "better" way.. But if it works, it works.. right...
someone is trying to suggest to him that had he not stuck to his knitting, he was sure to win more? these advertisers know how to create regrets!!!
Ironically they choose 1988 as the starting point. That's bias right there, you don't "randomly" start your long only example from 1988 or mid-2009.
I would think most billionaires don't beat the indices. You already have your wealth. All you have to do is beat inflation by 1-2%/year and you're still getting richer. Know when you've won the game and understand your risks.
Of course Trump is cautious, real estate is a gambling business. Gamblers who are not cautious do not survive. The AP is hardly a credible source of opinion on politics and markets, but thanks for your political opinions about Trump.