«They are only in it to
make outsized returns.»
But an opportunity this was, as the stocks had low enough spreads and high enough liquidity to
make outsized returns, and the risk was muted due to the fact that the acquirer already owned 50 % + of the target.
That's how advisors rationalize their fees, on the idea that they can help
you make outsized returns in stocks.
While liquidity is often viewed as a benefit, public markets» high efficiency and transparency also comes with the drawback of offering fewer opportunities to
make outsized returns.
The only way as an investor and as an entrepreneur to
make outsized returns is by being right and non-consensus.»
Second, VCs typically invest because your product, service and / or software is something they feel has an unusual ability to
make outsized returns.
Not exact matches
One caveat is that the fund is likely relatively small by hedge fund standards, which
makes it somewhat easier to post
outsized return figures.
At an investment conference in May, Ackman explained that his long position in the pharma firm stemmed from his belief that Valeant's aggressive acquisition style — and the
outsized returns it had so far produced —
made the company akin to a younger version of Warren Buffett's Berkshire.
«We have all been taught that earning high rates of
return requires taking on greater risks... If an investor can
make virtually risk - free bets with
outsized rewards, and keep
making the bets over and over, the results are stunning.»