November 29, 2006

The importance of return on invested money

I found an old paper from my sociology class back in 1996 or so that I thought would be interesting to share. The teacher was complaining about the disparity between rich and poor and mentioned Warren Buffet's fortune. If he has 4 billion dollars and gets an 8% return, he's looking at $864,000 each day. So in two days of non-work he earns more than most people earn in a lifetime of work. The original source is Hunt and Sherman's Economics.

You don't need a degree in economics to help manage your money but it doesn't hurt.

Posted by James Trotta at November 29, 2006 4:45 PM
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