What to do with 30 Million?

[MAJNOON]

Hello all,
It's like this, a friend of mine recently inherited the equivalent of 30 million USD. I don't want to get into the specific details because it will take forever. Anyway, he's an idiot when it comes to financial matters, and he was telling me how his goal is to be a billionaire within ten years. I told him it would be difficult, then I got to thinking that it may not be impossible with the right investment strategy and alot of luck.
So just for fun, how would you guys and girls invest 30 Million in order to become a Billionaire within a decade?

 

[buffer1]

Hello all,
It's like this, a friend of mine recently inherited the equivalent of 30 million USD. I don't want to get into the specific details because it will take forever. Anyway, he's an idiot when it comes to financial matters, and he was telling me how his goal is to be a billionaire within ten years. I told him it would be difficult, then I got to thinking that it may not be impossible with the right investment strategy and alot of luck.
So just for fun, how would you guys and girls invest 30 Million in order to become a Billionaire within a decade?

well if your friend is an idiot with money,he will never become a billionaire in ten years,he'll be lucky if he,s still a millionaire

 

[bran987]

Hello all,
It's like this, a friend of mine recently inherited the equivalent of 30 million USD. I don't want to get into the specific details because it will take forever. Anyway, he's an idiot when it comes to financial matters, and he was telling me how his goal is to be a billionaire within ten years. I told him it would be difficult, then I got to thinking that it may not be impossible with the right investment strategy and alot of luck.
So just for fun, how would you guys and girls invest 30 Million in order to become a Billionaire within a decade?

Well, MAJNOON

Just let your buddy know he'd have to be most likely........ one of the most brilliant investors in the history of the world. If he's comfortable with that, good.

To me, from what I can tell, to turn $30 million into a billion dollars inside of 10 years, he'll have to compound his money at an annual growth rate of 42%. Move over Buffett, move over Lampert, here comes MANJOON'S buddy.

Now don't get me wrong. Cuban turned it outta nothin'. He'll have to take high risk to earn those high returns. The question is, is he that smart? I'd turn the money over to Goldman or Morgan Stanley if the answer is no. If he thinks he's smart enough, take $2 million and experiment.

But this is a bullshit post anyway IMO. So do whatever.

 

[MAJNOON]

OK, fine, make it 20 years, that's not the point. what I want to know is how would you diversify your investments in order to become super-wealthy in a relatively short time.
And if it's such a Bullshit thread why did you waste your time?
This is just for fun people, you get 30 mil., what do you do with it?

 

[bran987]

OK, fine, make it 20 years, that's not the point. what I want to know is how would you diversify your investments in order to become super-wealthy in a relatively short time.
And if it's such a Bullshit thread why did you waste your time?
This is just for fun people, you get 30 mil., what do you do with it?

Ah well, it's fun to talk about anyway.

$30 million is enough to go to the top wealth managers in the world. They'll diversify you into exotic investments, art, etc. They have relationships with hedge fund managers as well. To invest in a hedge fund you have to be an "Accredited" investor, meaning a net worth of $1 million or $250,000 of annual income I believe, so he'll qualify for that. Hedge funds have performed well as of late, but managers of these things matter much more than managers of a mutual fund. Most mutual fund managers are just trying to stay as close to the S&P as possible so they don't lose their jobs, whereas hedge fund managers will attempt much more.

That's also enough money to purchase a prime piece of land in a major metropolitan area (really, $10 million is enough for him, don't put all your eggs in one basket, ever), which he could then contribute as equity in a joint venture with a real estate developer. As repayment for tying up his equity he would most likely receive a preferred return of up to 12% on the money in the land, plus a back end percentage of the profits from the development. That repayment could come in the form of a buyout or an ongoing interest in the rent/income from the completed building. You have to know what you're doing, but that's a way to double the money every 2-3 years. Once you get to a couple hundred million though, you have the same problem in that it's hard to find enough deals on a consistent basis to meet such demanding investment criterion.

Without being a professional in these sorts of things, I don't see any reason for him to take that much risk. Even with a modest return of 10% and a reasonable spending pattern, he will become very wealthy over a period of 20 years.

IMO, the difference in having $200 million and a billion is simply a matter of ego!

 

[bran987]

I just had one more thought. If it were me personally, right now, with the apartment market coming back, I would be buying apartments ~20 years old, 300 unit projects or so that could be brought up to date, repainted, refinish tubs install new appliances, change the countertrops, add pretty landscaping etc., increase rent (which the trend is in your favor as the market is coming back and you've improved the property) and then sell them to the apartment REIT's that are so flush with cash, looking for nice properties.

the apartment market has been beaten down for 10 years in many parts of the country, you could make a killing in the next 5 years doing that.

 

[Megalomaniac]

This is and easy one. Just give me 29 million and let him enjoy the 1 million for the next ten. In ten years I promise I'll give him a billion.


















BTW if this works than I'll have a huge EF party the night he signs the check.

 

[Synpax]

PM me and I'll give you my phone number. I need about 2 mil for my current project. And no, it is not related to real estate, the internet, gold or some other 'transactional' wealth gaining nonsense.

Essentially, I have come up with a new and very lucrative application for a very expensive piece of equipment. Each of these 'units' costs a couple of million but I have been able to access down-time on them at a very low costs in this area.

I need the money so I can put myself full-time into this business, pay for some very advanced programing to streamline and automate the data collected from this technology, and to bring a few academics on board. The client will mostly be very wealthy firms in a certain sector of the US and international market and they will each see the need to associate with my technology as being completely necessary - kind of like having a nuclear weapon.

The goal will be to IPO it though I suspect private funding will allow me to retain greater control while rewarding your friend for investing and avoiding the TOTALLY assinine SEC issues.

 

[manny78]

30 millions ? I'd put 10 into real estate (which is growing at a stratospheric rate here), 10 millions into government/banks, bonds, 5 into some kind of hedge fund and 5 millions for myself. Your friend wouldnt be billionaire but safe for the rest of his life.

 

[ZKaudio]

a lucky hedge fund has a chance of pulling 40%... unfortunately probably has a higher chance of pulling -40%