(Reuters) — Donald Sterling bought the Los Angeles Clippers for 16 million and is set to sell the team for $2 billion.
That’s a 16,000% return or a lofty 16% a year.
Here’s a look at other investments he could have made at the time, and how much less he would have made.
Since the start of 1981, the Standard & Poor’s 500 Index has risen about 1,315 percent, or 8.4 percent a year.
Including reinvested dividends, the S&P has delivered a total return of 1,509 percent, or 8.8 percent a year.
The Nasdaq Composite Index is up 1,994 percent, or 9.65 percent a year.
The Barclays U.S. Aggregate Index has risen 1,385 percent, or 8.5 percent a year.
Spot gold is up 113 percent, or just 2.3 percent a year.
Earlier this month, London-based Liv-ex said its Liv-ex Investables Index had gained 1,504 percent, or just under 11 percent a year, since its launch in 1988.
New York City real estate appraiser Jonathan Miller says the average Manhattan apartment has gained just 5.75 percent a year in value over the 25 years he has tracked their prices.
L.A. Clippers owner Donald Sterling watches team play in NBA game / Haaretz
(Haaretz) — I am doubly embarrassed by Donald Sterling’s contemptible, racist comments that surfaced this week. Once as an Angeleno and a second time as a Jew. Indeed, the world’s most racist basketball franchise owner is one of our own. Worse, in the course of his rantings, Sterling attempts to justify his racism by invoking his people and our homeland.
DS: It’s the world! You go to Israel, the blacks are just treated like dogs.
V: So do you have to treat them like that too?
DS: The white Jews, there’s white Jews and black Jews, do you understand?
V: And are the black Jews less than the white Jews?
DS: A hundred percent, fifty, a hundred percent.
V: And is that right?
DS: It isn’t a question - we don’t evaluate what’s right and wrong, we live in a society. We live in a culture. We have to live within that culture.
My initial reaction was outrage and disgust. How dare this despicable human being lie about his fellow Jews and Israeli culture to hoodwink his girlfriend into believing that it is acceptable to mistreat black people? I was outraged. After all, black Jews are obviously not treated like dogs. White Jews do not really think that black Jews are less than white Jews. Preposterous! The nerve of that man!
Then I realized that, while Sterling’s choice of words was inelegant and imprecise, he wasn’t lying. Too often, white Jews do treat black Jews poorly. We do have a bit of a race problem in our communities.