If you're looking for the funniest stuff, I suggest starting with the Steve, Don't Eat It Homage and then the travel category. You're on your own with the older posts that have yet to be categorized.

Monday, October 06, 2008

Who Wants To Win A Nobel Prize?

Caveat. It'll be in Economics. Still interested?

A market can only support a certain percent of capital seeking "better than average" returns.

Let's say you have a trillion dollar market and it averages 10% return. If a billion dollars goes for returns of 20%, the rest still gets 9.98%. No big deal.

If you raise that to 10 billion in chasers, the rest gets 9.8%. At 100 billion, the rest gets 8.88% and things are f*cked.

Just flesh that out (i've done the hard work already) and wait a decade or two and you'll be a Nobel Prize winner.

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