Trading very big money

Discussion in 'Options' started by marsman, Jul 19, 2016.

  1. marsman

    marsman

    How would you trade an account of size say $10 billion?
    As we all know trading big money and making comparable profits like small money is not that easy.
    So, what are the best classes of instruments to invest or trade that big money for making the most profit?
     
  2. K-Pia

    K-Pia

    Options, Swing, Real Estate
     
  3. Jones75

    Jones75

    Do just like Bill Gates, buy a trainload of CN, and then do the Donald Trump thing and buy commercial real estate.
     
  4. conduit

    conduit

    But Donald Trump has less than 3 billion in wealth which means he lost money over time given how much he inherited and how much he would have made had he just sat there and do nothing and instead just put the money into an index tracker. So, not sure following Donald Trump would be sound advice.

     
  5. K-Pia

    K-Pia

    image.jpeg
     
  6. If you have $10 billion no one would trade for pennies... own real estate/business. Look at the richest 100 people on Forbes List, no one is vag trader there, they own businesses.
     
  7. dealmaker

    dealmaker

    Bill Gates has a single family office Cascade Investments IE a fund that manages the assets of one client and if you look them up they are in 30 or so different positions some P/E style. While its difficult to move size around its also hard to replicate a family office portfolio on a small account.
     
    Last edited: Jul 19, 2016
  8. From what I find no one 'trades' very large accounts. The closest you could come to that would be inter-bank LIBOR trading which involve interest rate swaps, foreign currency options etc.:

    https://en.wikipedia.org/wiki/Libor

    As is human nature, traders in these instruments have inevitably engaged in substantial illegal activities over which people have gone to jail. You just can't trust people with a lot of money... they will steal it.

    https://en.wikipedia.org/wiki/Madoff_investment_scandal

    https://en.wikipedia.org/wiki/Jeffrey_Skilling

    http://www.accounting-degree.org/scandals/

    Berkshire Hathaway, which controls $144 billion, typically holds stocks and bonds in a large number of companies, some of which it owns completely (i.e. it holds all the stock):

    http://www.celebritynetworth.com/richest-businessmen/companies/berkshire-hathaway-net-worth/

    https://en.wikipedia.org/wiki/List_of_assets_owned_by_Berkshire_Hathaway

    It's interesting to look through that list of assets and realize it takes a lot of work to discover, buy and manage all those different assets.

    If I allow my trading account to much exceed a couple hundred K it will take up all my time and I end up putting it back into treasuries, no matter how low a rate I get.
     
    Last edited: Jul 19, 2016
  9. You're a Blue Whale at this level, you're Multiple Blue Whales. -- it's kind of impossible to make a killing at this stage.
    Why worry/think about these kind of scenarios...spend your time worrying/thinking about your own small real trading life -- no offense.
    o_O:rolleyes:
     
    cvds16 and dealmaker like this.
  10. clacy

    clacy

    20% gold/silver/diamonds/rare art
    20% stocks
    20% real estate
    30% treasuries
    10% cash

    Rebalance every couple of years and spend it down.

    Why even trade?
     
    #10     Jul 20, 2016
    dealmaker likes this.