September 4, 2015

BORN ON THIRD, THINKS HE HIT A DOUBLE:

The 1 Easy Way Donald Trump Could Have Been Even Richer: Doing Nothing (S.V. Date, 9/04/15, National Journal)

As "really rich" as Don­ald Trump is today, he might have been even rich­er if, in­stead of dab­bling in sky­scrapers and casi­nos, he'd simply taken his eight-fig­ure in­her­it­ance dec­ades ago and sunk it in­to the stock mar­ket.
Had the celebrity busi­ness­man and Re­pub­lic­an pres­id­en­tial can­did­ate in­ves­ted his even­tu­al share of his fath­er's real-es­tate com­pany in­to a mu­tu­al fund of S&P 500 stocks in 1974, it would be worth nearly $3 bil­lion today, thanks to the mar­ket's per­form­ance over the past four dec­ades. If he'd in­ves­ted the $200 mil­lion that For­bes magazine de­term­ined he was worth in 1982 in­to that in­dex fund, it would have grown to more than $8 bil­lion today.

Even the smal­ler fig­ure ex­ceeds the lower range of his pos­sible net worth as re­por­ted to the Fed­er­al Elec­tion Com­mis­sion, while the lar­ger num­ber ex­ceeds by bil­lions re­cent es­tim­ates of Trump's worth by fin­an­cial pub­lic­a­tions. And it would have come without the high-drama, roller-coast­er ca­reer that has in­cluded four cor­por­ate bank­ruptcies.

That a purely un­man­aged in­dex fund's re­turn could out­per­form Trump's hands-on wheel­ing and deal­ing calls in­to ques­tion one of Trump's chief selling points on the cam­paign trail: his busi­ness acu­men.

Posted by at September 4, 2015 5:25 PM
  

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