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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: scion who wrote (105793)1/16/2009 3:37:43 PM
From: Jeffrey S. Mitchell1 Recommendation  Read Replies (3) | Respond to of 122087
 
I've figured it out! (I say mockingly) Suppose I tell you I manage a fund worth $100M where I can absolutely guarantee that you will earn 12% a year. Interested?

Doing the math, I see that my fund will -- on paper -- "only" be managing $1B a year assuming a 12% compounded return. No red flags there since that's not a big number especially if people think I'm legit. The key element here is that, because I am using new money to pay out the interest, I can NOT grow too fast. Hence, I claim I am exclusive. Again, no red flags. From that point forward it's just a matter of figuring out what I need to cover the outflow and what I need to fund my lifestyle.

- Jeff