How Wily Donald Sterling Beat These 5 Investments

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By Dan Burns May 31, 2014

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(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.

Stocks

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.

Bonds

The Barclays U.S. Aggregate Index has risen 1,385 percent, or 8.5 percent a year.

Gold

Spot gold is up 113 percent, or just 2.3 percent a year.

Wine

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.

Real estate

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.

The views and opinions expressed in this article are the author’s own and do not necessarily reflect those of the Forward. Discover more perspectives in Opinion. To contact Opinion authors, email [email protected].

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