>>13572518Yeah me too smooth brain. The returns on equity are usually much higher than for other asset classes.
check this:
https://economics.harvard.edu/files/economics/files/ms28533.pdfAnd before you say something like "private returns on equity are higher than for public companies" I'll leave you this footnote:
"Moskowitz and Vissing-Jørgensen (2002) compare the returns on listed and unlisted U.S. equities over the
period 1953–1999 and find that in aggregate, the returns on these two asset classes are similar and highly
correlated, but private equity returns exhibit somewhat lower volatility. Moskowitz and Vissing-Jørgensen
(2002) argue, however, that the risk-return tradeoff is worse for private compared to public equities, because
aggregate data understate the true underlying volatility of private equity, and because private equity portfolios
are typically much less diversified."
I'll repeat this: if you can get 20% per year long-term, then that's very difficult to beat. I very much doubt most private businesses (eg a supermarket) have a return on equity of 20% or more.
