Bernie Sanders and Elizabeth Warren want to
take wealth away from rich corporate tycoons.
But wait! Top entertainers and
other celebrities make even more than corporate tycoons. Taylor Swift makes much more than even the
most outrageously paid CEO – some $170 million in 2016, followed by the band
One Direction and various athletes, authors, and TV personalities in that year. But wait!
Unknown to most Americans, the top earners by far (and it’s not even
close) are the publicity-shy handful of hedge fund managers at the very top of
that category. Ken Griffin at Citadel and
James Simons at Renaissance Technologies are roughly tied at over $1.7
billion (that’s billion with a b) just for the single year 2016 (the last
year for which complete information is available). The graphic below, courtesy of Institutional
Investor magazine, shows the stunning comparisons.
Womack Weekly Commentary September 18, 2017 The Markets “In theory, there is no difference between theory and practice, in practice there is.” Yogi Berra was talking about baseball, but the concept also applies to diversification, according to the GMO White Paper, The S&P 500: Just Say No . From the title, you might think the authors – Matt Kadnar and James Montier – don’t like U.S. stocks. They do: “Being a U.S. equity investor over the past several years has felt glorious. The S&P 500 has trounced the competition provided by other major developed and emerging equity markets. Over the last 7 years, the S&P is up 173 percent (15 percent annualized in nominal terms) versus MSCI EAFE (in USD terms), which is up 71 percent (8 percent annualized), and poor MSCI Emerging, which is up only 30 percent (4 percent annualized). Every dollar invested in the S&P has compounded into $2.72 versus MSCI EAFE’s $1.70 and MSCI Emerging’s $1.30.” The au...
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