If an investment has an expected return of x%, then borrowing 100% and putting it into that investment will yield an expected return of 2x minus the borrowing cost. It’s simple math.Triple digit golfer wrote: ↑Sun Dec 27, 2020 6:34 pmI have no idea what that means, honestly.Marseille07 wrote: ↑Sun Dec 27, 2020 6:33 pmIt's basically 2x S&P500 2x long-term bonds as far as I understand. Think of it like HEDGEFUNDIE but 2x instead of 3x.Triple digit golfer wrote: ↑Sun Dec 27, 2020 6:30 pmYes. 13% beat the market. In a given year. But it isn't the same fund managers each year. And even if done over 30 years, that still means he's highly unlikely to be invested in a fund run by one if them.Marseille07 wrote: ↑Sun Dec 27, 2020 6:27 pmWhy do you think so? 87% of active fund managers trail the SPX but the flipside is 13% of them beat the market.Triple digit golfer wrote: ↑Sun Dec 27, 2020 6:23 pm You listed a mutual fund as the answer to the question of how to go about earning 15% per year over 30 years.
It is highly unlikely to be successful.
But I don't have to in order to know that it's likely to not attain 15% annual returns over the next 30 years.
Expected return is not guaranteed return. But again, people generally don’t require guarantees for decision-making.