Friday, August 5, 2016

Warren Buffett: a monkey is a better investor than Trump

A dart-throwing monkey is a better investor than Donald Trump.


Is Warren Buffett correct in stating that a monkey is a better investor than Trump? Buffett puts money on monkey to outperform Trump as an investor “A monkey throwing darts to pick stocks would have made a 150% profit during the decade-long run when Donald Trump’s namesake company, Trump Entertainment Resorts, lost 90 cents on the dollar, the billionaire Warren Buffett stated”





Buffett: “That was the only time Donald Trump went to the American people and said, ‘I’m a winner, invest in my company.’ … Over the next 10 years, the company loses money every year, every single year. He takes $44 million in compensation. If a monkey had thrown a dart at the stock page it would have made 150%. People who believe in [Trump] came away losing well over 90 cents on the dollar. They got back less than a dime.” 

Considering that Trump’s public company was formed in 1995, when the stock market was still on a tear, this seems to be a fair assessment. Even with the “dot com crash,” a random selection of stocks would have been a better investment. 





Buffett is perhaps too charitable. From 1995 to year’s end 2004, the S&P 500 did gain a 157% return. But if our brave monkey turned on dividend reinvestments and sported a return close to the S&P 500, then there would have been a 203% return (calculator). 





(Here’s another source on Trump’s company: As its stock collapsed, Trump’s firm gave him huge bonuses and paid for his jet.)



Source:
https://www.blogger.com/blogger.g?blogID=7141574283349219741#editor/target=post;postID=7993375059968623788;onPublishedMenu=overview;onClosedMenu=overview;postNum=1;src=postname
http://www.marketwatch.com/story/how-donald-trump-left-13-billion-on-table-2016-03-01
http://www.moneytalksnews.com/why-youre-probably-better-investing-than-donald-trump/
https://www.quora.com/Is-Warren-Buffett-correct-in-stating-that-a-monkey-is-a-better-investor-than-Trump
http://money.cnn.com/2016/08/03/news/economy/buffett-trump-stock/
http://www.marketwatch.com/story/buffett-puts-money-on-monkey-to-outperform-trump-as-an-investor-2016-08-02
https://www.google.ca/search?q=buffett+trump+monkey&oq=buffett+trump+monkey&aqs=chrome..69i57j69i61.9325j0j4&sourceid=chrome&ie=UTF-8

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